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Fixed Mortgage Rates Continue Upward Climb

Freddie Mac's weekly mortgage rates report released Wednesday may add to fears that the ""conclusion of the Fed's mortgage purchase program"":http://dsnews.comarticles/feds-mortgage-purchase-program-sunsets-2010-03-31 will cause interest rates to spike.

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For the week ending April 1, 2010, rates for 30-year fixed mortgages averaged 5.08 percent with an average 0.7 point--the second highest level this year. Rates jumped up

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from last week's average of 4.99 percent and were considerably higher than last year at this time when 30-year fixed-rate mortgages averaged 4.78 percent.

Freddie Mac also reported an increase in rates for 15-year fixed mortgages. This week, rates averaged 4.39 percent with an average 0.6 point, up slightly from last week's average of 4.34 percent. However, rates were still notably lower than this same week in 2009 when 15-year fixed-rate mortgages averaged 4.52 percent.

It was a different story for adjustable-rate mortgages (ARMs), though. According to Freddie Mac's weekly survey, rates for 5-year Treasury-indexed ARMs averaged 4.1 percent this week with an average 0.6 point, down from 4.14 percent last week. During the same period, rates for 1-year Treasury-indexed ARMs dropped down from 4.2 percent to 4.05 percent with an average 0.6 point.

""Interest rates for fixed mortgages rose this week following a run up in long-term bond yields, while ARM rates eased slightly,"" said Frank Nothaft, Freddie Mac VP and chief economist. ""Rates on 30-year fixed loans were the highest since the starting week of this year.""

About Author: Brittany Dunn

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