Mortgage rates head higher, Freddie Mac say

By Palm Beach Business.com

DELRAY BEACH — Mortgage rates shot up over the past week, moving in line with long-term bonds.

Freddie Mac’s Primary Mortgage Market Survey spotted the 30-year fixed-rate mortgage averaged 5.05 percent with an average 0.7 point, up from last week’s 4.93 percent. Last year at this time, the 30-year FRM averaged 5.07 percent.

In South Florida, rates range between 4.85 percent, with one point at BankAtlantic to 5.125 percent with one point at Chase Bank, according to Palm Beach Business.com’s weekly survey.

“Interest rates for 30-year fixed mortgages followed long-term bond yields higher and rose above 5 percent this week amid a mixed set of economic data reports” said Frank Nothaft, Freddie Mac vice president and chief economist. “For instance, the January producer price index jumped well above the market consensus, but the consumer price index remained subdued and consumer confidence declined to the lowest level since April 2009, according to the Conference Board.”

According to Freddie Mac, the 15-year this week averaged 4.40 percent with an average 0.7 point, up from last week’s 4.33 percent.A year ago at this time, the 15-year FRM averaged 4.68 percent.

The 5-year adjustable-rate mortgage averaged 4.16 percent this week, with an average 0.6 point, up from last week’s 4.12 percent. A year ago, the 5-year ARM averaged 5.06 percent.

“Ther were also varying reports as to the current state of the housing market,” Nothaft said. “The S&P/Case-Shiller® national home price index rose for the third consecutive quarter in the fourth quarter, albeit at a slower rate, and the 20-city composite index showed an increase in December 2009 for the seventh month in a row; six metropolitan areas experienced positive year-over-year growth, compared to four in November. New home sales, however, unexpectedly slowed in January to the smallest pace since records began in 1963, and the supply of homes at the current sales rate rose to 9.1 months, the most since May 2009.”