MORTGAGE & FINANCE: Mortgage rates rise for third straight week
Stronger economic activity placed upward pressure on long-term Treasury yields, and, in turn, lifted mortgage rates up for a third straight week.
The Freddie Mac survey showed the 30-year, fixed-rate mortgage averaged 3.62% for the week ending Thursday, up from last week’srise to 3.59%. Last year at this time, the 30-year FRM averaged 4.15%.
The 15-year FRM, a popular refinancing choice, averaged 2.88%, increasing from last week‘s record low of 2.84%. A year ago, the average rate for a 15-year FRM was 3.36%.
Five-year, Treasury-indexed, hybrid adjustable-rate mortgages averaged 2.76%, down from 2.77% last week and falling from 3.08% a year earlier.
And one-year, Treasury-indexed ARMs averaged 2.69%, up from last week’s 2.65% and down from 2.86 % last year.
Fixed mortgage rates are heightening at a time of low inflation and stronger economic activity. Twelve-month growth in the core consumer price index fell for a second month to 2.1% in July. At the same time, industrial production rose .6% in July after a .1% increase in June. And retail
sales jumped .8% in July from a .7% decline in June.
Home loan analytics firm Bankrate, which surveys large banks, reported the 30-year FRM rose to 3.86% from 3.81%, while the 15-year FRM ticked up to 3.05% from 3%. The 5/1 ARM sits at 2.93%, up from 2.91% for the week.