WASHINGTON Long-term mortgage rates climbed higher for the fifth week in a row amid concerns that the Federal Reserve may slow its bond purchases and signs of a strengthening economy, according to Freddie Mac.
The average for the 30-year, fixed-rate loan rose to 3.91%, from 3.81% last week; while the average for the 15-year mortgage hit 3.03% up from 2.98% last week and topping 3% for the first time since May 2012.
ARM rates also moved higher, with the average for the five-year ARM climbing to 2.74%, from 2.66% last week; and the average for the one-year ARM rising to 2.58%, from 2.54%.
Freddie Mac Chief Economist Frank Nothaft cited recent economic data including the Fed’s report on regional economic conditions known as the Beige Book which indicated overall economic activity rose at a modest to moderate pace over April and May in the majority of its districts. Pending home sales for April rose at the fastest pace since April 2010 while May’s consumer sentiment reading was revised upward to its highest level since July 2007.
