Freddie Mac, Bankrate see mortgage rates moving little

By Palm Beach Business.com

DELRAY BEACH — It was a quiet week on the mortgage front, with interest rates showing little or no movement.

Bankrate’s national mortgage survey found rates inching higher, with the 30-year fixed-rate mortgage hitting 5.02 percent with 0.40 point, up  from 4.97 percent a week ago. Freddie Mac’s Primary Mortgage Market Survey found the 30-year averaging 4.81 percent with 0.8 point,  compared with 4.80 percent a week ago.

Palm Beach Business.com’s South Florida Mortgage Survey found the 30-year averaging 4.99 percent with 0.7 point. The survey is made up of rates posted by major lenders serving Palm Beach, Broward and Miami-Dade counties.

"Mortgage rates held relatively stable this week on news that the economy improved and inflation remained in check at the end of 2010,” Freddie Mac Chief Economist Frank Nothaft said. “In the fourth quarter, the economy grew at a 3.2 percent annualized rate, compared to 2.6 percent in the third quarter, and was led by a 4.4 percent gain in consumer spending. In addition, the core price index for consumer expenditures rose by an annualized rate of 0.4 percent, which was the smallest increase ever since records began in 1959.”

Said Bankrate: News showing continued strength in manufacturing, higher consumer spending, and robust corporate earnings offset Federal Reserve bond purchases (intended to keep rates low), with bond yields moving slightly higher. Mortgage rates are closely related to yields on long-term Treasury notes. But despite the uptick, mortgage rates remained within the well-established range that has prevailed since mid-December.

Bankrate said the 15-year fixed rate mortgage averaged 4.29 percent with 0.39 point, up from 4.28 a week ago. Freddie put the average at 4.08 percent with 0.8 point, down from 4.09 percent a week ago.

Surveyed banks: PNC, Bankatlantic, Bank of America, Chase, Citibank, TD Bank, Wachovia, Suntrust.