Long-Term Rates Rise

McLEAN, Va. – Long-term mortgage climbed higher this week, after four straight weeks of holding steady, according to Freddie Mac. The average for the 30-year, fixed-rate loan rose to 6.22% this week, from 6.17% last week; while the average for the 15-year, fixed-rate loan climbed to 5.90%, from 5.87% last week. ARM rates also moved higher, with the average for the one-year ARM increasing to 5.47%, from 5.44%; and the average for the five year ARM inching up to 5.93%, from 5.92%. Freddie Mac Chief Economist Frank Nothaft said the interest rate rise was related to data released last week showing the country had stronger job growth in March than markets anticipated. He also said mortgage refinancing has remained strong, with 40 percent of total mortgage applications for refinancing. Among those borrowers who are choosing to refinance now, a large share are doing so to avoid an adjustment to their monthly payment as the initial period on their adjustable-rate loan expires or to extract equity through a cash-out refi, said Nothaft.