Freddie: Long-Term Mortgage Rates Rise

Mortgage interest rates were mixed this past week with fixed-rate loans somewhat higher and adjustable-rate mortgages lower, according to numbers compiled by mortgage financier Freddie Mac. Still, housing affordability is the highest it’s been in many years, with significantly reduced rates and housing prices.
Frank Nothaft, Freddie Mac’s VP and chief economist, commented that newly released housing indicators contain positive signs that the worst may be behind us, pointing to recent reports that show the smallest 12-month decline in property values in over a year, as well as a jump in new home construction.
Based on ""Freddie Mac’s weekly survey"":http://www.freddiemac.com/pmms/release.html, the 30-year fixed-rate mortgage (FRM) averaged 5.20 percent (0.7 point) for the week ending July 23, 2009. Last week, it was 5.14 percent, but last year at this time, the 30-year FRM came in at 6.63 percent.
Freddie reported that the 15-year FRM this week averaged 4.68 percent (0.7 point), up from last week when it was 4.63 percent. A year ago at this time, the 15-year FRM averaged 6.18 percent.
Five-year adjustable-rate mortgages (ARMs) averaged 4.74 percent (0.7 point) in the GSEs’ study this week, down from last week’s average of 4.83 percent. A year ago, the 5-year ARM was 5.49 percent. One-year ARMs are now at 4.77 percent (0.6 point), up slightly from 4.76 percent last week. At this time last year, the 1-year ARM was 5.49 percent.
However, ""Bankrate's weekly report"":http://www.bankrate.com/mortgagerates on mortgage rates, which is based on data provided by the top 10 banks and thrifts in the nation’s top 10 markets, showed interest rates inched lower this week, although the numbers were higher than those reported by Freddie. The GSE's report covers about 125 lenders and includes thrifts, credit unions, commercial banks, and mortgage lending companies.
According to Bankrate, the 30-year FRM averaged 5.55 percent this week among the 10 largest mortgage lenders, down from 5.58 percent last week. The 15-year FRM was reported at 4.89 percent, down from 4.93 percent. Five-year ARMs came in at 4.93 percent, down from 4.98 percent, while the average jumbo 30-year fixed-rate retreated to 6.49 percent.
Bankrate explained in its report that mortgage rates have been yo-yoing up and down as corporate earnings announcements and economic data toy with investor sentiment. Mortgage rates did move lower, though, after Fed Chairman Ben Bernanke reiterated in his ""congressional testimony"":http://dsnews.comindex.php/home/news_story/3275 this week that the central bank is likely to keep interest rates low for an extended period of time.