Us mortgage rates rise for third week in a row

Photo: Fifth World Art

New data from Freddie Mac reveals that 30-year fixed-rate mortgage (FRM) averaged 3.80 per cent with an average 0.6 point for the week ending 26th February 2015, up from last week when it averaged 3.76 per cent. A year ago at this time, the 30-year FRM averaged 4.37 per cent. 

15-year FRM this week averaged 3.07 per cent with an average 0.6 point, up from last week when it averaged 3.05 percent. A year ago at this time, the 15-year FRM averaged 3.39 percent. 

A 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.99 percent this week with an average 0.5 point, up from last week when it averaged 2.97 percent. A year ago, the 5-year ARM averaged 3.05 percent.

A 1-year Treasury-indexed ARM averaged 2.44 percent this week with an average 0.4 point, down from last week when it averaged 2.45 percent. At this time last year, the 1-year ARM averaged 2.52 percent. 

Mortgage applications decreased 3.5 per cent in the week ending 20th February compared to the previous week, according to the Mortgage Bankers Association.

Nonetheless, demand for new homes is healthy, with the MBA and Builder Application Survey data for January 2015 showing mortgage applications for new home purchases increased by 29 per cent from the previous month.

"On the strength of an improving labor market and low interest rates, January new home sales were up nearly 30 percent from December," said Lynn Fisher, MBA’s Vice President of Research and Economics. "Relative to a year ago, new home sales were up 2.6 percent on an unadjusted basis."