Long-Term Mortgage Rates Rise as Shorter-Term ARMs Fall
Freddie Mac released its weekly update on national mortgage rates on Thursday morning, and once again, short- and long-term rates are moving in divergent directions.
Among fixed-rate mortgages (FRMs), 15-year FRMs and 30-year FRMs tacked on four basis points each, rising to 3.39% and 4.37%, respectively.
Adjustable-rate mortgages (ARMs) headed the other way, with 5/1 ARMs ticking down three basis points to 3.05%, and 1-year ARMs slipping five basis points to reach 2.52%.
Commenting on the results, Freddie Mac vice president and chief economist Frank Nothaft pointed to new data showing that new home sales in January were up 9.6% year over year.
This increasing demand for housing could explain why fixed-rate mortgages, at least, became more expensive. Combined with a 13.4% rise in the cost of housing over the course of last year, the higher rates on fixed-rate mortgages will only make homebuying more expensive.
The article Long-Term Mortgage Rates Rise as Shorter-Term ARMs Fall originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.
