Homeowners looking to refinance their homes in order to improve their credit scores did not receive good news to end February, as most types of mortgages saw their average rates increase, according to Freddie Mac.
The mortgage company's latest Primary Mortgage Market Survey released last week found that the average rate for 30-year fixed-rate mortgage increased by 0.12 percentage points to increase past the 5 percent threshold to 5.05 percent. One week earlier the average rate had shed 0.04 percentage points
"Interest rates for 30-year fixed mortgages followed long-term bond yields higher and rose above 5 percent this week amid a mixed set of economic data reports" said Frank Nothaft, Freddie Mac vice president and chief economist. "For instance, the January producer price index jumped well above the market consensus, but the consumer price index remained subdued and consumer confidence declined to the lowest level since April 2009, according to the Conference Board."
Similarly, the average rate for 15-year FRMs shot up by 0.07 percentage points to 4.40 percent for the week. The average rate had declined slightly the week prior, edging down by 0.01 percentage points.
While 5-year adjustable-rate mortgages also had their average rates shoot up 0.04 percentage points to 4.16 percent for the week, the average rate for 1-year ARM saw the only decrease of the week as it dropped 0.08 percentage points to 4.15 percent.