BY DANIEL OFFNER
Interest rates jumped slightly after a recent downward trend, according to the most recent weekly survey from Freddie Mac, a government-sponsored enterprise with the goal of providing liquidity, stability and affordability to the nation’s residential mortgage markets.
Each week, Freddie Mac surveys about 125 lenders, including thrifts, credit unions, commercial banks and mortgage lending companies, to compile average interest rates and points.
Based on figures provided by Freddie Mac, interest rates for 30-year fixed-rate mortgages averaged 3.80 percent with an average .6 points for the last week of February – up from the week before, when interest rates averaged 3.76 percent.
In addition, interest rates for 15-year fixed-rate mortgages averaged 3.07 percent with an average of 0.6 points – up from the prior week when it averaged 3.05 percent.
Five-year Treasury-indexed hybrid adjustable rate mortgages also saw an increase in February, according to Freddie Mac, when it averaged 2.99 percent with an average 0.5 points – up from 2.97 percent the week before.
“Mortgage rates rose for the third consecutive week in February, following solid housing data,” Len Kiefer, deputy chief economist with Freddie Mac, said.
However, one-year Treasury-indexed adjustable rate mortgages averaged 2.44 percent in February with an average 0.4 points – a decrease from last week when it averaged 2.45 percent.
Freddie Mac, additionally, compiles its week-by-week interest data to determine monthly interest rates for fixed and adjustable rate mortgages.
At the end of January, Freddie Mac reported that 30-year FRMs averaged 3.67 percent, 15-year FRMs averaged 2.99 percent, 5-year ARMs averaged 2.89 percent and 1-year ARMs averaged 2.38 percent.
“New home sales beat market expectations at an annual pace of 481,000 units, down slightly from 482,000 units in December, but up 5.3 percent from a year ago,” Kiefer added. “Also, the S&P/Case-Shiller National House Price Index rose 4.6 percent over the 12-months ending in December 2014.”
This time last year, Freddie Mac reported 30-year fixed mortgages at an average 4.37 percent, 15-year fixed rate mortgages averaged 3.39 percent, 5-year adjustable rates averaged 3.05 percent and 1-year adjustable rates averaged 2.52 percent.
Reach Daniel Offner at (718) 357-7400, Ext. 125, firstname.lastname@example.org, or @DanielOffner.