Thirty-Year Fixed Mortgage Rates Jump Back Over 4 Percent

March 22, 2012 (Shirley Allen)

Mortgage interest rates jumped across the board this week with the 30-year fixed rate mortgage climbing over the four percent barrier for the first time since last October according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending March 22nd.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages increased this week with the 30-year fixed rate averaging 4.08 percent with an average of 0.8 points, up from an average of 3.92 percent last week. A year ago, the 30-year fixed rate mortgage averaged 4.81 percent.

It’s the first time in 20 weeks that 30-year fixed mortgage rates have gone above four percent.

The 15-year fixed rate mortgage increased to an average of 3.30 percent with an average of 0.8 points, up from last week’s average of 3.16 percent. At this time last year, the 15-year fixed rate mortgage averaged 4.04 percent.

Adjustable Rate Mortgages:

Interest rates for adjustable mortgages also increased this week with the 5-year Treasury-indexed hybrid ARM averaging 2.96 percent, up from last week’s average of 2.83 percent, with an average of 0.7 points. The 5-year adjustable rate mortgage averaged 3.62 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage averaged 2.84 percent with an average of 0.6 points, up from last week’s average of 2.79 percent. A year ago, the 1-year adjustable rate mortgage averaged 3.21 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Mortgage rates are catching up with increases in U.S. Treasury bond yields placing the average 30-year fixed mortgage rate above 4 percent for the first time since the end of October 2011. Bond yields rose over the past two weeks in part due to an improving assessment of the state of the economy by the Federal Reserve, better than expected results of commercial bank stress tests and the likelihood of a second bailout for Greece. Meanwhile, consumers continued to reduce their debt burdens in the fourth quarter of 2011. For instance, homeowners reduced their financial obligations ratio (debt payments as a share of disposable income) to the lowest point since the second quarter of 1994.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 4.08 4.08 4.13 4.08 4.11 4.05
Fees & Points 0.8 0.8 0.8 0.7 0.8 0.9

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.30 3.31 3.34 3.29 3.35 3.25
Fees & Points 0.8 0.7 0.9 0.7 0.8 0.9

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.96 3.06 2.88 3.13 2.83 2.82
Fees & Points 0.7 0.7 0.8 0.7 0.9 0.8
Margin 2.74 2.73 2.75 2.72 2.77 2.74

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.84 2.95 2.64 3.13 2.71 2.68
Fees & Points 0.6 0.7 0.6 0.5 0.6 0.5
Margin 2.76 2.79 2.75 2.72 2.77 2.75

The National Mortgage Rate Snapshot One Year Ago One Week Ago
  30-YR 15-YR 5/1-YR 1-YR ARM 30-YR 15-YR 5/1-YR 1-YR ARM
Average 4.81   4.04   3.62   3.21   3.92   3.16   2.83   2.79  
Fees & Points 0.7   0.7   0.6   0.6   0.8   0.8   0.8   0.6  
Margin N/A N/A 2.74   2.76   N/A N/A 2.74   2.76  

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