Job Growth Causes 10 Basis Points-Plus Uptick in Mortgage Rates

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates rising this week on stronger signs of jobs growth and consumer spending, as the 30-year fixed-rate mortgage (FRM) averaged 3.63 percent with an average 0.8 point, up from last week when it averaged 3.52 percent. Last year at this time, the 30-year FRM averaged 3.92 percent. Also this week, the 15-year FRM averaged 2.79 percent with an average 0.8 point, up from last week when it averaged 2.76 percent. A year ago at this time, the 15-year FRM averaged 3.16 percent. "Fixed mortgage rates rose this week on stronger signs of jobs growth and consumer spending," said Frank Nothaft, vice president and chief economist, Freddie Mac. "The economy added 236,000 new workers in February which helped push down the unemployment rate to 7.7 percent. This helped offset the effects of the payroll tax holiday expiration and led to a 1.1 percent increase in retail sales, which was well above the market consensus forecast." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.61 percent this week with an average 0.6 point, down from last week when it averaged 2.63 percent. A year ago, the five-year ARM averaged 2.83 percent. The one-year Treasury-indexed ARM averaged 2.64 percent this week with an average 0.4 point, up from last week when it averaged 2.63 percent. At this time last year, the one-year ARM averaged 2.79 percent.