Ending a five-week downward streak, fixed mortgage rates finally pulled up this week on signs the economy may be getting back on its feet after starting the year off weak.
In its latest survey results, Freddie Mac [1] recorded the average 30-year fixed rate at 4.14 percent (0.5 point) for the week ending June 5, up from last week's average 4.12 percent. A year ago, the 30-year fixed-rate mortgage (FRM) was 3.91 percent and rising.
The 15-year FRM also moved up this week, hitting an average of 3.23 percent (0.5 point).
While fixed rates shifted up, adjustable-rate mortgage (ARM) averages dropped. According to Freddie Mac, the 5-year Treasury-indexed hybrid ARM averaged 2.93 percent (0.4 point) in the latest survey, down from 2.96 percent previously. Meanwhile, the 1-year ARM came to 2.40 percent (0.4 point) from 2.41 percent a week ago.
Personal finance resource Bankrate.com [2] also recorded increases in its own weekly survey. According to Bankrate's data [3], the 30-year fixed this week was up to an average 4.32 percent, while the 15-year fixed climbed up 3.41 percent.
Contrary to Freddie, Bankrate also saw an increase in adjustable rates, recording a 7 basis point gain in the 5/1 ARM to an average 3.31 percent.
Though it's been a light week for economic news, analysts for the site noted there were a few promising pieces of information for investors to grab hold of: "Evidence that economic growth is accelerating after a dismal start to the year helped push mortgage rates slightly higher from the lowest levels in nearly a year. Comments from some members of the Federal Reserve's Open Market Committee about the need to curtail the Fed's easy money policy also underscored this week's upward movement in bond yields and mortgage rates."
However, with the May employment report coming out Friday morning, "[a]ny disappointments on the job front could easily unwind this week's increase," they add.