Fixed Rates Rise

The average 30-year fixed mortgage rate rose from 6.10% to 6.12% over the seven-day period ended Jan. 26, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate rose from 5.67% to 5.70%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages remained at 5.75%, and the average rate for one-year Treasury-indexed ARMs climbed from 5.18% to 5.20%. Fees and points averaged 0.5 of a point for fixed-rate mortgages and 0.6 of a point for ARMs. "The minuscule rise in mortgage rates this week most likely reflects market expectations that the Federal Reserve will once again raise rates next week," said Frank Nothaft, Freddie Mac's chief economist. "At the beginning of last week, financial markets priced in a 90% probability that the Fed would increase short-term rates. Today, the odds are statistically certain." A year ago, the average 30-year and 15-year fixed rates were 5.66% and 5.14%, respectively, and the average one-year ARM rate was 4.18%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.