McLEAN, Va. – Fixed-rate mortgage rose significantly this week–for the second week in a row–after falling to four-year lows last month, according to Freddie Mac.
The average for the benchmark 30-year, fixed-rate loan climbed to 6.04% this week, from 5.72% last week; while the average for the 15-year, fixed-rate mortgage rose to 5.64%, from 5.25% last week.
ARM rates were mixed, with the average for the five-year ARM also rising, to 5.37%, from 5.19%; but the average for the one-year ARM declining slightly to 4.98%, from 5.00% last week.
The rise in long-term mortgage rates came as increasing numbers of borrowers are opting for fixed-rate loans to refinance into, according to the Freddie Mac. The secondary mortgage market giant reported that 92% of prime borrowers who had a one-year ARM moved into a fixed-rate mortgage when they refinanced in the fourth quarter, compared to 85% in the third quarter.
“After trending up in the past two weeks, long-term fixed mortgage rates are back up to nearly where they were at the beginning of the year,” said Frank Nothaft, chief economist for Freddie Mac. “In contrast, average rates on adjustable-rate mortgages are about 0.5 points below levels of the first week of this year.”
