McLEAN, Va. – Mortgage rates rose significantly this week, after falling to a four-year low over the previous week, according to Freddie Mac.
Illustrating a major disconnect between short-term and long-term rates, the rise in mortgage rates came as the Federal Reserve cut short-term rates, first by 75 basis points, and by another 25 bps on Wednesday.
Frank Nothaft, chief economist for Freddie Mac, noted instead the closer relationship between mortgage rates and Treasury bonds, which have rallied over the past week. “The movement in fixed mortgage rates was broadly consistent with the movements of Treasury bonds over the week,” he said.
The average for the 30-year, fixed-rate loan surged to 5.68% this week, from 5.48% last week; and the average for the 15-year, fixed-rate mortgage moved to 5.17%, from 4.95%.
ARM rates also moved higher, with the average for the five-year ARM climbing to 5.32%, from 5.13% last week; and the average for the one-year ARM moving to 5.05%, from 4.99%.
