Fixed mortgage rates rose for
the third straight week after setting all-time lows, with the typical
30-year rate increasing from 3.59% to 3.62%, home finance giant Freddie Mac reported.
Freddie Mac's weekly survey,
released Thursday morning, pegged this week's average for the 15-year
fixed loan at 2.88%, up from 2.84% a week earlier. The start rates on
variable-interest loans were mixed.
As the economy strengthens in
fits and starts, demand decreases for the ultra-safe securities issued
by the U.S. Treasury. That pushes up their yield, or effective interest
rate, and many other rates, including those on mortgages, tend to
The yield on the benchmark
10-year Treasury note closed at 1.8% Wednesday after bottoming out at
1.4% on July 24. The average 30-year fixed mortgage rate, as calculated
by Freddie Mac, hit an all-time low of 3.49% that same week.
Freddie Mac rate survey, which dates back to 1971, is a closely watched
indicator of mortgage trends. It asks lenders what they are offering on
loans of up to $417,000 to solid borrowers who have 20% or higher down
payments or 20% equity in their homes if they are refinancing.
In the latest survey, these borrowers would have paid 0.6% of the loan amount in lender fees and discount points.
rates could throttle the latest in a long series of refinancing booms
as mortgage rates gradually descended from double-digit levels in the
The mortgage arms of big banks and independent lenders have
been collecting huge profits when they sell loans made at the low
US 30 Year Mortgage Rate data by YCharts
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