Fixed Rates Show Little Movement Over the Week

Fixed mortgage rates moved up just ""a smidgen"" this week, according to surveys from ""Freddie Mac"":http://www.freddiemac.com/ and ""Bankrate.com"":http://www.bankrate.com/.

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According to Freddie Mac's Primary Mortgage Market Survey, the average interest rate for a 30-year fixed-rate mortgage (FRM) was 3.56 percent (0.8 point) for the week ending February 21, up from 3.53 percent last week. Last year at this time, the 30-year FRM averaged 3.95 percent.

The 15-year FRM was flat from last week, averaging 2.77 percent (0.8 point).

Adjustable rates were similarly still. According to Freddie Mac's survey, the average rate for a 5-year adjustable-rate mortgage (ARM) this week was 2.64 percent (0.5 point), the same as last week. The 1-year ARM averaged 2.65 percent (0.4 point) up from 2.61 percent previously.

""Mortgage rates have been relatively stable, hovering near record lows, for the past four weeks which is helping to spur new home construction,"" said Frank Nothaft, VP and chief economist at Freddie Mac. ""For instance, new construction on single-family homes rose to an annualized rate of 613,000 in January, the most since July 2008. In addition, single-family building permits were up to the highest issuance level since June 2008.""

Meanwhile, Bankrate's findings showed the 30-year fixed rate rising a single basis point to 3.80 percent, while the 15-year fixed rate remained unchanged at 3.02 percent. The 5/1 ARM averaged 2.76 percent, up one basis point.

Fifty-eight percent of analysts ""surveyed"":http://www.bankrate.com/news/rate-trends/mortgage.aspx by Bankrate anticipate rates will remain relatively unchanged in the coming week as markets wait for news to react to. However, one expert said investors are ignoring signs they shouldn't.

""The techs have been indicating a change to a bullish (higher prices, lower yields) move, but the market has stubbornly refused,"" said Dick Lepre, senior loan officer at ""RPM Mortgage"":http://www.rpm-mtg.com/. ""We are at a time where, from my point of view, fundamentals remain weak, yet equities continue to rally. I can make no sense of this.

""Adjusted for inflation, GDP at the end of 2012 was 1.0287 times what it was in the first quarter of 2008, meaning that we are halfway through a 'lost decade,' yet everyone is acting like things are fine.""