Freddie Mac, Bankrate agree. Mortgages continue to soar

By Palm Beach Business.com

DELRAY BEACH — Mortgage rates continued to soar this week, hitting the 5 percent mark in the Bankrate survey for the first time since May.

Bankrate.com’s national mortgage survey found the 30-year fixed rate mortgage averaging 5.0 percent with 0.40 point, up from 4.89 percent a week ago.

Freddie Mac’s Primary Mortgage Market Survey had the 30-year at 4.83 percent with 0.7 point, up from 4.61 percent last week. It was the fifth consecutive week that rates have gone up in the Freddie Mac survey.

"Market concerns over stronger economic growth that, in the near term, could lead to an increase in inflation have sparked a rise in bond yields and mortgage rates have followed,” said Frank Nothaft, chief economist for Freddie Mac.” For instance, the growth in retail sales excluding automobiles in November was twice that of the market consensus forecast. Industrial production showed the biggest gain in November since July, according to the Federal Reserve Board. And consumer sentiment, as measured by the Thomson Reuters/University of Michigan index, rose to a six-month high in December. As a result, interest rates for 30-year fixed mortgages this week were the highest since the week of May 20th of this year."

Also from the two surveys, the average 15-year fixed mortgage increased to 4.37 percent with 0.38 point from 4.26 percent a week ago, according to Bankrate,  and increased to 4.17 percent with 0.7 point from 3.96 a week ago, according to Freddie Mac.

Adjustable rate mortgages were also higher, with the average 5-year ARM jumping to 3.95 percent, according to Bankrate, and 3.77 percent, according to Freddie Mac.