Mortgage Rates Creep Above the 3.4 Percent Mark

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing mortgage rates moving higher from the previous week, as the 30-year fixed-rate mortgage (FRM) averaged 3.42 percent, its highest reading since Sept. 29, 2012, with an average 0.7 point for the week ending Jan. 24. This total was up from last week when it averaged 3.38 percent. Last year at this time, the 30-year FRM nearly hit the four percent mark, averaging 3.98 percent. Also this week, the 15-year FRM averaged 2.71 percent with an average 0.7 point, up from last week when it averaged 2.66 percent. A year ago at this time, the 15-year FRM averaged 3.24 percent. "Fixed mortgage rates were up slightly over the holiday week but remain highly affordable and should continue to aid in the ongoing housing recovery," said Frank Nothaft, vice president and chief economist, Freddie Mac. "For instance, existing home sales totaled 4.65 million in 2012, showing a 9.2 percent increase over 2011 and the strongest pace in five years. In addition, the Federal Housing Finance Agency's purchase-only house price index rose 5.7 percent over the 12 months ending in November 2012, marking the largest annual increase since June 2006." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.67 percent this week with an average 0.5 point, the same as last week. A year ago, the five-year ARM averaged 2.85 percent. Also this week, the one-year Treasury-indexed ARM averaged 2.57 percent with an average 0.5 point, the same as last week. At this time last year, the one-year ARM averaged 2.74 percent.