Mortgage Rates Rise, Expected to Feel Squeeze from Debt Ceiling

Mortgage rates took a jump this week as markets await the fiscal drama to unfold in the next few months.

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According to ""Freddie Mac's"":http://www.freddiemac.com/ Primary Mortgage Market Survey, the average rate on a 30-year fixed-rate mortgage (FRM) was 3.40 (0.7 point) percent for the week ending January 10, up somewhat significantly from 3.34 percent in 2013's first survey.

The 15-year fixed average also climbed--though not as drastically--reaching 2.66 percent (0.7 ppoint). The 15-year FRM averaged 2.64 percent previously.

Adjustable rates also showed some movement. The 1-year adjustable-rate mortgage (ARM) averaged 2.60 percent (0.5 point), up from 2.57 percent in the last survey. The 5-year ARM was the only one to fall, averaging 2.67 percent (0.6 point) (compared to 2.71 percent previously).

""Bankrate"":http://www.bankrate.com/ reported similar results in its weekly survey, with the 30-year fixed average soaring to 3.67 percent--its highest level since September. The 15-year fixed average also adjusted upward (though in a more modest fashion), rising to 2.92 percent.

Meanwhile, the 5/1 ARM just barely slid up to 2.77 percent, Bankrate noted.

""All the euphoria in the immediate aftermath of the fiscal cliff deal seems bound to give way to renewed concerns as we draw closer to the debt ceiling deadline,"" Bankrate said in a release. ""With a contentious debate expected on raising the debt ceiling and much wrangling over spending cuts, the nervousness and uncertainty that is sure to develop will likely help bring bond yields and mortgage rates lower during the first quarter of this year.""