Freddie Mac: Mortgage rate soar — and soar and soar

By Palm Beach

DELRAY BEACH — Wow. That woosh you hear is the sound of mortgage rates soaring to their highest point in nearly six months in one quick leap.

Freddie Mac’s Primary Mortgage Market Survey survey found the average the 30-year fixed-rate mortgage at 5.29 percent with an average 0.7 point, up from 4.91 percent a week ago. That’s the highest rate since December 11.

To put that number in perspective, the 30-year averaged 6.09 percent this time a year ago.

North Palm Beach-based’s weekly national mortgage survey put the 30-year at 5.65 percent, with 0.44 point, up from 5.27 percent a week earlier.

"30-year fixed-rate mortgage rates caught up to the recent rise in long-term bond yields this week to reach a 25-week high," Freddie Mace Chief Economist Frank Nothaft said.

Also from the Freddie Mac survey:

The 15-year fixed rate this week averaged 4.79 percent with an average 0.7 point, up from 4.53 percent a week ago. A year ago at this time, the 15-year fixed rate averaged 5.65 percent.

Five-year adjustable-rate mortgages averaged 4.85 percent this week, with an average 0.6 point, up from last week’s 4.82 percent.

One-year ARMs averaged 4.81 percent this week with an average 0.6 point, up from 4.69 percent a week ago. At this time last year, the 1-year ARM averaged 5.06 percent.

Also from the Bankrate survey: the 15-year fixed rate averaged 5.06 percent, and the one-year ARM averaged 5.20 percent.

Low mortgage rates have been one of the catalysts behind the recent signs of life in the housing market. Bankrate said the increase in rates means a borrower taking out a 30-year mortgage would have monthly payments of $952.44 on a $165,000 loan — about $21 higher than at last week’s 5.27 percent.

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JUNE 4, 2009 click to go home
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