Real estate rates end week higher
Mortgage rates ticked higher this week as markets began to factor in another likely rate hike from the Federal Reserve next week, according to surveys conducted by Freddie Mac and Bankrate.com.
In Freddie Mac’s survey, the 30-year fixed-rate mortgage averaged 6.12 percent, with an average 0.5 point, for the week ended today, up from last week’s average of 6.1 percent. The average for the 15-year fixed is 5.7 percent, up from last week’s average of 5.67 percent. Points on both the 30- and 15-year averaged 0.5.
In Bankrate.com’s survey, fixed mortgage rates reversed course this week, rising modestly. The average 30-year fixed rate mortgage increased from 6.12 percent to 6.17 percent, according to Bankrate.com. The 30-year fixed-rate mortgages in this week’s survey had an average of 0.29 discount and origination points.
Mortgage rates moved slightly higher this week, on the back of higher Treasury yields, according to Bankrate.com. New government debt issuance to refinance maturing debt pushed yields on long-term government bonds, and fixed mortgage rates, higher. But this past week may have been the calm before the storm. In the coming week, the first estimate of fourth-quarter 2005 economic growth, Gross Domestic Product, will be released. In addition, the Federal Open Market Committee meets on Jan. 31 and is expected to raise interest rates for the 14th consecutive time. This will be Alan Greenspan’s final FOMC meeting before retiring as Fed chairman and handing over the reigns to Ben Bernanke. These events could each contribute to additional mortgage rate volatility — up or down — in the coming week.
(Source: Inman News)