Mortgage rates began 2014 with a round of increases, kicking off a trend many experts believe will continue through the rest of the year.
[IMAGE]""""Freddie Mac's"""":http://www.freddiemac.com/ weekly Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaging 4.53 percent (0.8 point) for the week ending January 2, up from the last week of 2013, when it averaged 4.48 percent. A year ago, the 30-year FRM was at 3.34 percent.
[COLUMN_BREAK]The 15-year FRM this week averaged 3.55 percent (0.7 point), climbing from 3.52 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) also saw an increase, rising to 3.05 percent (0.4 point) from 3.00 percent. The 1-year ARM was flat at 2.56 percent (0.5 point).
Frank Nothaft, VP and chief economist for Freddie Mac, cited three major factors behind the week's increases: rising """"consumer confidence"""":http://www.themreport.com/articles/us-consumer-confidence-bounces-back-2013-12-31 as reported by the Conference Board, a strong showing for home prices in the most recent """"S&P/Case-Shiller Indices"""":http://www.themreport.com/articles/home-prices-jump-136-in-october-2013-12-31, and a slight gain in """"pending home sales"""":http://www.themreport.com/articles/pending-home-sales-steady-in-november-2013-12-31 for November--all of which served as """"signs of a stronger economic recovery,"""" he said.
Meanwhile, finance site """"Bankrate.com"""":http://www.bankrate.com/ reported on the findings in its weekly survey, putting the 30-year fixed at 4.69 percent--up 6 basis points--with the 15-year fixed at 3.73 percent--up 3 points. The 5/1 ARM was up to 3.52 percent, nearly 10 basis points up, Bankrate reported.
""""Mortgage rates finished 2013 more than a full percentage point higher than where they began,"""" Bankrate said in a release. """"While mortgage rates are still below September's high point of the year, they did finish 2013 near the upper end of this year's range.""""