WASHINGTON Mortgage rates resumed their climb this week, after they declined last week for the first time in six weeks, according to Freddie Mac.
The average for the benchmark 30-year loan rose to 4.51% this week, from 4.29% last week; while the average for the 15-year, fixed-rate mortgage moved to 3.53%, from 3.39%. ARM rates were mixed, with the average for the five-year ARM rising to 3.26%, from 3.10%; and the average for the one-year ARM holding steady at 2.66%.
Frank Nothaft, chief economist for Freddie Mac, attributed the rise in rates to renewed speculation that the nation’s central bank may soon taper its economic stimulus efforts.
“June’s strong employment led to more market speculation that the Federal Reserve will reduce future bond purchases, causing bond yields to rise and mortgage rates followed,” Nothaft said.
