Freddie Mac: Employment Gains Push Mortgage Rates Up
Jan 10th 2013 11:50AM
Updated Jan 10th 2013 1:05PM
Freddie Mac released its second weekly update of the new year on national mortgage rates this morning, noting that fixed mortgage rates moved higher following December's employment report.
Thirty-year fixed-rate mortgages (FRM) currently average 3.40%, up six basis points from last week's 3.34%, and even with rates seen at the beginning of November. Fifteen-year FRMs cost 2.66%, up two basis points from last week, and a return to mid-December levels.
Among adjustable-rate mortgages, one-year ARMs are up three basis points at 2.60%, while 5/1 ARMs are breaking the curve this week -- getting cheaper, and dropping four basis points to 2.67%,.
Of the four, 15-year FRMs remain the best bargain, having fallen 16% since this time last year. In Freddie's Jan. 12, 2012, update, that particular flavor of mortgage cost 3.16%, or about 19% more than it costs today.
Freddie Mac noted that the economy added 155,000 jobs, above the consensus market forecast, in December and that the unemployment rate stayed steady at 7.8%, the lowest since December 2008.
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