Mortgage Rates Spike Sharply

Freddie Mac released its weekly update on national mortgage rates this morning, showing a continued rise in interest rates -- nearly across the board. While still historically low, fixed mortgage rates are the highest they've been in a year.

Thirty-year fixed-rate mortgages (FRM) and 15-year FRMs both spiked sharply higher on the week, up 22 and 21 basis points, to 3.81% and 2.98%, respectively.

Increases in variable-rate mortgages were more modest, with 5/1 adjustable rate mortgages rising just three basis points to 2.66%, and one-year ARMs declining a single basis point to 2.54%.

Commenting on the spike in rates, Freddie Mac Vice President and Chief Economist Frank Nothaft said  "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. Improving economic data may have encouraged those views."

Nothaft pointed out that consumer confidence in May hit its highest level since February 2008. This reflects an increasing willingness, and ability, for consumers to spend on, among other things, pricier mortgages.

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  • Report this Comment On May 30, 2013, at 5:36 PM, sanoran wrote:

    Unlike the previous housing bubble, this one was created entirely by bin-Bernanke and the Prime Dealer Bankers that bin-Bernanke was trying help with freshly printed inflation :) bin-Bernanke is still hiding about 1 Trillion dollars of junk mortgages, that Bank of America and other big Banks (which keep the un-elected bin-Bernanke in power) got paid in full for.

    (check out Bernanke's balance sheet, look for mortgage backed securities... )

    http://www.federalreserve.gov/releases/h41/current/

    US Citizens are paying for it now with inflation. It is unlikely that bin-Bernanke can take in another trillion dollars worth of junk mortgages again, without forn icatng US citizens quite painfully with inflation.

    Of course, bin-Bernanke is not worried, he will get a 'chair professorship' in some university, funded by GoldmanSachs or some other grateful Bank that has been enjoying his Viagra, ... er I mean Stimulation recently and is very satiated with the money they have made. US Citizens, on the other hand, never elected Bernanke nor can they kick him out. Bernanke, Yellen, Greenspan, ... all from Israel, all in power because Christian Americans are second class citizens in USA :)

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