WASHINGTON Longtime mortgage rates climbed more than half-a-percentage point this week the highest one-week increase in 25 years amid concerns the Federal Reserve will wind down its stimulus program.
The average for the benchmark 30-year, fixed-rate loan rose to 4.46% this week, a two-year high, from 3.93% last week; while average for the 15-year mortgage climbed to 3.5%, from 3.04%, according to Freddie Mac. ARM rates also moved higher, with the average for the five-year ARM moving to 3.08%, from 2.79% last week; and the average for the one-year ARM rising to 2.66%, from 2.57%.
Freddie Mac Chief Economist Frank Nothaft said after Fed Chief Ben Bernanke’s remarks June 19, “about the possible timing of reduced bond purchases, Treasury bond yields jumped over the week and mortgage rates followed.”
