Real Estate & Area News

Mortgage Rates Move Higher for 2nd Straight Week

US mortgage insurer Freddie Mac reported Thursday that mortgage rates surged this week, making it that much more expensive to borrow money. According to the report, the average rate for a 30-year, fixed-rate mortgage is 4.46 percent, a full 17 basis points higher than last week's average of 4.29 percent. The average rate for a 15 year fixed loan shot up 17 basis points as well, from 3.30 percent to 3.47 percent. The 30-year loan, the most oft-used loan for home purchases, has now risen a full percentage point since May amid constant speculation about when the Federal Reserve might begin tapering its bond-buying program.

Rates for so-called hybrid, adjustable-rate mortgages, or ARMs, were mixed this week. The average rate for a 5-year ARM rose from 2.94 percent to 2.99, while the average rate for a 1-year ARM slid from 2.60 percent to 2.59 percent. To calculate the averages, Freddie contacts conforming lenders from across the country between Monday and Wednesday of a given week, then issues the results on Thursday.

December 6, 2013