Mortgage Rates Climb for Second Week

Mortgage rates took another step up this week as economic news remained lukewarm.

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According to ""Freddie Mac's"":http://www.freddiemac.com/ Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 3.51 percent (0.7 point) for the week ending May 16, a significant climb from last week, when it averaged 3.42 percent. Last year at this time, the 30-year fixed averaged 3.79 percent and falling.

The 15-year FRM averaged 2.69 percent (0.7 point) this week, up from 2.61 percent last week.

Adjustable rates also moved up. The 5-year hybrid adjustable-rate mortgage (ARM) average rate was 2.62 percent (0.5 point), up from 2.58 percent previously, while the 1-year ARM averaged 2.55 percent (0.4 point), up from 2.53 percent.

""Mortgage rates followed U.S. Treasury bond yields higher this week on signs of stronger ""consumer spending"":https://themreport.com/articles/autos-boost-april-retail-sales-2013-05-13,"" said Frank Nothaft, chief economist and VP for Freddie Mac. ""Households are also shoring up their balance sheets. Total ""household debt"":http://www.dsnews.com/articles/household-debt-recedes-driven-by-declining-mortgage-credit-card-balances-2013-05-14 fell by about $110 billion the first quarter. In addition, approximately 3.0 million homeowners were seriously delinquent (90 days or more delinquent or in foreclosure) on their first mortgages, down from a peak of about 5.1 million in the fourth quarter of 2009.""

""Bankrate.com"":http://www.bankrate.com/ also recorded rate increases this week. According to Bankrate's weekly national survey, the benchmark 30-year fixed rate climbed to 3.71 percent, an increase of 11 basis points. The average 15-year fixed rate was 2.92 percent.

Meanwhile, the 5/1 ARM averaged 2.68 percent.

""The suddenly glass-half-full economic sentiment continues to push bond yields and mortgage rates higher,"" Bankrate said in a release. ""Despite the increase, however, mortgage rates have been in a narrow one-third of a percentage point range since December. That is in tune with the not-too-hot, not-too-cold economic performance.""