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Mortgage Rates See Sharp Increases

Long-term mortgage rates saw a jump this week following better-than-expected economic reports.

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""Freddie Mac"":http://www.freddiemac.com/ released Thursday the results of its Primary Mortgage Market Survey, putting the average 30-year fixed-rate mortgage (FRM) at a rate of 4.46 percent (0.5 point) for the week ending December 5, up from 4.29 percent last week. A year ago, the 30-year FRM averaged 3.34 percent.

The 15-year FRM this week averaged 3.47 percent (0.4 point), up from 3.30 percent previously.

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Reports were mixed for adjustable rates. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.99 percent (0.4 point) this week, up from 2.94 percent. The 1-year ARM, meanwhile, averaged 2.59 percent (0.4 point), a slight drop from 2.60 percent.

Frank Nothaft, VP and chief economist for Freddie Mac, pinned the increases on encouraging growth in private jobs and ""new home sales"":http://www.themreport.com/articles/october-new-home-sales-speed-to-fastest-pace-in-six-months-2013-12-04.

""Private companies added 215,000 new jobs in November according to the ADP employment report, well above the consensus. In addition, revisions added 54,000 jobs in the prior month,"" Nothaft explained. ""Lastly, new home sales rose 25 percent in the month of October to a seasonally adjusted 444,000 annual pace, though this followed a weaker than expected September report and downward revisions over the summer months.""

""Bankrate.com's"":http://www.bankrate.com/ weekly national survey showed increases all around. According to the site, the 30-year fixed average rose to 4.55 percent this week, a gain of 11 basis points, while the 15-year fixed average increased 15 points to 3.62 percent.

The 5/1 ARM was up more modestly, rising 4 basis points to 3.33 percent.

About Author: Tory Barringer

Tory Barringer began his journalism career in early 2011, working as a writer for the University of Texas at Arlington's student newspaper before joining the DS News team in 2012. In addition to contributing to DSNews.com, he is also the online editor for DS News' sister publication, MReport, which focuses on mortgage banking news.
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