facebook
twitter
rss
account
search
search
 

Mortgage rates head higher

May 16, 2013 at 1:04 PM   |   Comments

| License Photo
WASHINGTON, May 16 (UPI) -- Average U.S. mortgage rates for long-term loans rose for the second consecutive week in the week ended Thursday, the Federal Home Loan Mortgage Corp. said.

Prior to the two-week stretch, interest rates had dropped for six consecutive weeks.

In the current week, average rates on 30-year fixed rate loans rose from 3.42 percent to 3.51 percent with an average 0.7 point, Freddie Mac said.

Average rates for 15-year fixed rate loans rose from 2.61 percent to 2.69 percent with an average 0.7 point.

Average interest rates for five-year adjustable rate mortgages rose from 2.58 percent to 2.62 percent with 0.5 point, Freddie Mac said. And one-year adjustable rate mortgages using 10-year bonds as a benchmark averaged 2.55 percent with 0.4 point in the week, up from 2.53 percent in the previous week.

One point is equal to 1 percent of the amount of the loan and is typically paid up front. It includes a corresponding discount on the loan's long-term interest rates.

"Mortgage rates followed U.S. Treasury bond yields higher this week on signs of stronger consumer spending," said Frank Nothaft, vice president and chief economist at Freddie Mac.

"Households are also shoring up their balance sheets," he said, noting household debt had declined by $110 billion in the first quarter.

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
First A-29 rolls off Florida assembly line for USAF program First A-29 rolls off Florida assembly line for USAF program
2
ATM fees on the rise, again ATM fees on the rise, again
3
Babcock conducting refit, maintenance of mine-hunter vessel Babcock conducting refit, maintenance of mine-hunter vessel
4
Navy orders more Block IV Tomahawk cruise missiles Navy orders more Block IV Tomahawk cruise missiles
5
Saab to overhaul Navy submarine; supply remotely operated vehicles Saab to overhaul Navy submarine; supply remotely operated vehicles
Trending News
x
Feedback