Mortgage rates across the United States have risen slightly for a second consecutive week.
The average rate on a 30-year fixed mortgage inched up to 4.33 percent from 4.28 percent last week, according to the latest survey from mortgage buyer Freddie Mac. At this time last year the average was 3.56 percent.
“Mortgage rates crept up further following the uptick in the 10-year Treasury yield as minutes of the Federal Reserve’s last meeting indicated little possibility of a pause in the central bank’s reduction of bond purchases,” Frank Nothaft, vice president and chief economist at Freddie Mac, said in a statement.
The average rate on a 15-year fixed mortgage also registered a slight uptick, to 3.35 percent from 3.33 percent last week. A year ago, it averaged 2.77 percent, according to Freddie Mac.
Averages for the two most popular hybrid adjustable-rate mortgages also rose from last week. Previously at 3.05 percent, the five-year ARM increased to 3.08 percent. The one-year ARM also trended upward, from 2.55 percent a week ago to 2.57 percent this week.
Mortgage rates have risen almost a full percentage point since hitting record lows about a year ago.
Analysts are evenly split on where mortgage rates will go next week. In the latest Mortgage Rate Trend Index, half of the panelists polled think rates will fall, and half predicted rates will remain relatively unchanged. None of the panelists expected mortgage rates to rise over the next week.
“Recent economic data has been coming in weaker than expected,” said Michael Becker, a mortgage banker with WCS Funding Group in Baltimore. “While some of this weakness can be explained by the weather much of the nation has been experiencing this winter, I think it also looks like the economy is losing some momentum. Because of this, I think we will see slightly lower rates in the coming week.”
So while the rates MAY go down next week, don’t wait too long if you plan on purchasing a home in Pasco, Richland or Kennewick. They may go up instead of down.
Distinctive Properties, Inc.