Freddie Survey Finds Long-Term Rates Back Over 5%

A 13-basis-point increase has pushed the average rate for the 30-year fixed-rate mortgage back above 5%, the latest Freddie Mac Primary Mortgage Market Survey found. For the week ended Feb. 25, the average for the 30-year FRM was 5.05%, compared with 4.93% the week prior. The results were comparable with the most recent Mortgage Bankers Association Weekly Application Survey, where the average rate for the 30-year FRM increased 9 bps to 5.03%. Freddie Mac chief economist Frank Nothaft commented mortgages followed long-term bond yields higher as the January producer price index increased above the market consensus. However, the consumer price index, he said, "remained subdued," and the Conference Board said consumer confidence is at its lowest point since April 2009. He also noted mixed news regarding the housing market, as the S&P/Case-Shiller index rose for the third consecutive quarter but the pace of new home sales slowed to their smallest level since 1963. The average rate for 15-year FRMs increased 7 bps from the previous week to 4.40%, the 5/1 adjustable-rate mortgage increased 4 bps to 4.16% and the one-year ARM decreased 7 bps to 4.23%. Average fees and points on the FRM products were 0.7% and on the ARM product they were 0.6%.