Strengthening Economy Increases Mortgage Rates

Signs of a stronger economy drove fixed-rate mortgages up near their highs for the year, Freddie Mac reports in its weekly mortgage market survey.

The economy is showing several signs of strengthening, including signs from the housing market. Reports this week noted that the real GDP showed 2.5 percent growth in the second quarter while residential construction spending rose for the ninth consecutive month in July, notes Frank Nothaft, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages with mortgage rates for the week ending Sept. 5: 

• 30-year fixed-rate mortgages: averaged 4.57 percent, with an average 0.7 point, rising from last week’s 4.51 percent average. Last year at this time, 30-year rates averaged 3.55 percent. 
• 15-year fixed-rate mortgages: averaged 3.59 percent, with an average 0.7 point, rising from last week’s 3.54 percent average. Last year at this time, 15-year rates averaged 2.86 percent. 
• 5-year hybrid adjustable-rate mortgages: averaged 3.28 percent, with an average 0.5 point, rising from last week’s 3.24 percent average. Last year at this time, 5-year ARMs averaged 2.75 percent. 
• 1-year ARMs: averaged 2.71 percent, with an average 0.5 point, rising from last week’s 2.64 percent average. A year ago at this time, 1-year ARMs averaged 2.61 percent.

Source: Freddie Mac