WASHINGTON – Mortgages rates rose a little for the second straight week, which could portend higher rates down the road as the federal government is ending a key support for the market.
Average rates for the 30-year, fixed-rate loan increased to 4.99% this week, from 4.96% last week; while the average for the 15-year, fixed-rate mortgage inched up to 4.34%, from 4.33%.
Short-term rates also moved higher, with the average for the five-year ARM moving to 4.20%, from 4.12% last week; and the average for the one-year ARM rising to 4.14%, from 4.09%.
The rising rates come as the Treasury is preparing to end the program under which it has purchased more than $1.2 trillion worth of agency backed mortgage securities, adding liquidity to the market and keeping rates low.
