Mortgage Rates Jump to Two Year High

Mortgage interest rates jumped to their highest levels in nearly two years with fixed rate mortgages rising nearly half a percent last week according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending June 27th, 2013.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages increased by nearly half of a percent with the 30-year fixed rate mortgage increasing fifty-three basis points to 4.46 percent with an average of 0.8 points after declining by five basis points last week. It was the first time in 66 weeks that 30-year mortgage rates have rose above four percent. Mortgage rates have increased by 111 basis points over the last eight weeks and are at their highest level since July 2011. A year ago, the 30-year fixed rate mortgage averaged 3.66 percent.

Average 30-year fixed rates were generally the lowest in the Southeastern portion of the United States where mortgage rates averaged 4.43 percent while the highest rates were reported in the North Central and Southwestern areas of the country where interest rates averaged 4.49 percent.

The average rate for a 15-year fixed mortgage also increased this week, averaging 3.50 percent with an average of 0.8 points, up from an average of 3.04 percent last week. At this time last year, the 15-year fixed rate mortgage averaged 2.94 percent.

Adjustable Rate Mortgages:

Interest rates for adjustable-rate mortgages also trended higher this week with the 5-year Treasury-indexed hybrid ARM averaging 3.08 percent, with an average of 0.7 points, up from an average of 2.79 percent last week. The 5-year adjustable rate mortgage averaged 2.79 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage averaged 2.66 percent with an average of 0.5 points, up from an average of 2.57 last week. A year ago, the 1-year adjustable rate mortgage averaged 2.74 percent.

Freddie Mac PMMS 06-28-13

Tags: 15-year fixed, 30-year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates, 5-year hybrid, 1-year treasury

Source:
Freddie Mac

Reported by Shirley Allen