Freddie Mac, Bankrate: Mortgage rates inch higher

By Palm Beach Business.com

DELRAY BEACH — Mortgage rates moved slightly higher for a second consecutive week, according to both Bankrate and Freddie Mac surveys released Thursday.

Bankrate’s national mortgage survey put the 30-year fixed-rate mortgage at 4.97 percent with 0.44 point, up from 4.95 percent a week earlier.

Freddie Mac’s Primary Mortgage Market Survey found the 30-year averaging 4.80 percent with 0.7 point, up from last week’s 4.74 percent.

"Mortgage rates followed bond yields a little higher this week amid positive data reports from The Conference Board that suggest the economy is strengthening,” Freddie Mac Chief Economist Frank Nothaft said. “The index of leading indicators rose 1.0 percent in December, nearly twice that of the market consensus forecast and represented the sixth consecutive monthly increase, according to the Board. They also reported a stronger gain in consumer confidence for January, rising to an eight-month high. In addition, the share of households who said jobs were plentiful rose to the highest level since May 2009."

Said Bankrate: Fixed mortgage rates have shown very little movement over the past month and are essentially unchanged since the first of the year. This comes after a significant increase in mortgage rates from early November through mid-December. But with mortgage rates stabilized, the Federal Reserve is unwilling to rock the boat.

The Fed's post-meeting statement on Jan. 26 was little changed from the previous meeting in December and gave no indication that changes to interest rates or the bond purchase program are likely. The Fed would be perfectly happy to see mortgage rates stay right where they are, so expect their bond buying and principal reinvestments to continue at a pace necessary to do so.

Also from the surveys:

The 15-year fixed-rate rose to 4.09 percent with 0.7 point, up from 4.05 percent a week ago, according to Freddie Mac.

Bankrate found the 15-year averaging 4.28 percent with 0.41 point, down from 4.29 percent a week ago.