WASHINGTON – Long-term mortgage rates surged this week from near all-time lows the prior month as mortgage rates continued to track bond yields and improving economic data, according to Freddie Mac.
The average for the 30-year, fixed-rate loan rose to 4.08% this week, from 3.92% last week, the first time it has been higher than 4% since October. The average for the 15-year mortgage moved to 3.30% this week, from 3.16% last week.
ARM rates moved higher too, with the average for the five-year ARM climbing to 2.96%, from 2.83%; and the average for the one-year ARM rising to 2.84%, from 2.79%.
“Mortgage rates are catching up with increases in U.S. Treasury bond yields, placing the average 30-year fixed mortgage rate above 4% for the first time since the end of October 2011,” said Frank Nothaft, chief economist for Freddie Mac. “Bond yields rose over the past two weeks in part due to an improving assessment of the state of the economy by the Federal Reserve, better than expected results of commercial bank stress tests and the likelihood of a second bailout for Greece.”
