A combination of higher-than-anticipated inflation data and continuing geopolitical concerns during the week ending March 24 drove rates slightly upward, according to Freddie Mac’s survey for the period.
The average rate for a 30-year fixed rate mortgage was 4.81% with an average 0.7 of a point during the week, compared to 4.76% the previous week and 4.99% a year ago.
The average 15-year FRM rate during the week ending March 24 was 4.04% with an average 0.7 of a point, up from 3.97% the previous week but down from 4.34% the same week the year previous.
For five-year Treasury-indexed adjustable-rate mortgages, the average rate during the week ending March 24 was 3.62% with an average 0.6 of a point, up from 3.57% the previous week but down from 4.14% a year ago.
The average one-year Treasury ARM rate during the week ending March 24 was 3.21%, up from 3.17% the previous week but down from 4.2% the same week the year previous.
The inflationary indicator that drove rates higher in the past week does not appear to be the kind of definitive sign of inflation that would necessarily suggest continuing upward pressure on rates going forward.
Freddie Mac vice president and chief economist Frank Nothaft noted that while some saw the 2.1% rise in the consumer price index’s growth rate compared to 1.6% in January as inflationary, most of the increase was due to gains in food and energy prices that tend to be volatile. The core index, he noted, rose only slightly to 1.1% compared to 1% in January.
