Mortgage Rates Rise for First Time in Two Months

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing fixed mortgage rates moving higher following December's employment report as the 30-year fixed-rate mortgage (FRM) averaging 3.40 percent, its highest reading in eight weeks. The FRM was up from last week when it averaged 3.34 percent. The all-time record low for the average 30-year fixed was 3.31 percent set Nov. 21, 2012, and last year at this time, the 30-year FRM averaged 3.89 percent. 15-year FRM this week averaged 2.66 percent with an average 0.7 point, up from last week when it averaged 2.64 percent. A year ago at this time, the 15-year FRM averaged 3.16 percent. "Fixed mortgage rates increased slightly following a positive employment report for December," said Frank Nothaft, vice president and chief economist for Freddie Mac ."The economy added 155,000 jobs, above the consensus market forecast, and November's job growth was revised upward by another 24,000 workers. This helped keep the unemployment rate steady at 7.8 percent, the lowest since Dec. 2008. For all of 2012, 1.86 million jobs were created and represented the largest annual gain since 2006." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.67 percent this week with an average 0.6 point, down from last week when it averaged 2.71 percent. A year ago, the five-year ARM averaged 2.82 percent. The one-year Treasury-indexed ARM averaged 2.60 percent this week with an average 0.5 point, up from last week when it averaged 2.57. At this time last year, the one-year ARM averaged 2.76 percent.