Mortgage Rates on the Rise

July 8, 2011

After being mostly at a standstill the past month, long and short-term mortgage rates were moving up this week, reports Freddie Mac in its weekly mortgage market survey.

"Mortgage rates followed Treasury yields higher over the holiday week but remain quite affordable by historical standards,” says Frank Nothaft, chief economist at Freddie Mac. “For instance, interest rates on all mortgage outstanding in the first quarter of this year averaged just under 6 percent. With today's rates, these home owners who have the ability to refinance could shave $169 per month in interest payments on a $200,000, 30-year fixed mortgage."

A Closer Look at Rates

30-year fixed-rate mortgage:The most popular choice among home buyers inched up to 4.60 percent this week from 4.51 percent last week. A year ago at this time, the 30-year rate averaged 4.57 percent.

15-year fixed-rate mortgage:Averaged 3.75 percent, up from last week’s 3.69 percent average. Last year at this time, the 15-year fixed-rate mortgage averaged 4.07 percent.

5-year adjustable-rate mortgage:Averaged 3.30 percent for the week, also up from last week’s 3.22 percent. A year ago, the 5-year ARM averaged 3.75 percent.

1-year ARM:Averaged 3.01 percent, inching up from last week’s 2.97 percent average. A year ago, it averaged 3.75 percent.

Source: “30-Year Fixed-Rate Mortgage Rises to 4.60 Percent,” Freddie Mac (July 7, 2011)