Mortgage Rates Jump to A Year High

Despite the steady increase, mortgage rates still remain at historically low rates.

The 30-year, fixed-rate mortgage soared to 3.81%, drastically jumping from 3.59% last week, and up from 3.75% last year, Freddie stated in its Primary Mortgage Market Survey.

“Fixed mortgage rates followed long-term government bond yields higher following a growing market sentiment that the Federal Reserve may lessen its accommodative policy stance,” Frank Nothaft, vice president and chief economist with Freddie Mac, said.

“Improving economic data may have encouraged those views. For instance, the Conference Board reported that confidence among consumers rose in May to its highest level since February 2008,” Nothaft added.

Similarly, the 15-year, FRM climbed to 2.98%, compared to 2.77% last week, and slightly up from 2.97% a year ago.

The 5-year Treasury-indexed adjustable-rate mortgage inched up to 2.66%, up from 2.66% last week, but down from 2.84% a year ago.

The 1-year Treasury-index ARM barely dropped, slipping to 2.54% from 2.55% a week prior, and 2.75% a year earlier.

Meanwhile, Bankrate data also posted mortgage interest rates increasing for the fourth week in a row.

Bankrate’s 30-year, FRM pushed up to 3.99%, growing from 3.74% last week.

In addition, the 15-year, FRM rose to 3.21%, up from 2.97% a week earlier, while the 5/1 ARM increased to 2.81% from 2.7%.

However, according to the Federal Housing Finance Agency, mortgage rates stayed at lower levels in April, with the contract mortgage interest rate slighting escalating .02% to 3.56%.

Additionally, the average interest rate on a conventional, 30-year, fixed-rate mortgage of $417,000 or less was 3.77% in April, the FHFA posted.

information seen on housing wire. May 30,2013