Mortgage rates edge back above 5%, Freddie Mac says
Interest rates offered by lenders for 30-year fixed home loans have edged back above 5% for the first time in three weeks, Freddie Mac said in a survey released Thursday.
The big government-controlled mortgage buyer pegged this week's average for a 30-year loan at 5.05% with 0.7% of the loan balance paid in upfront origination fees and discount points. It had reported an average of 4.93% last week and 5.07% a year ago.
The Freddie Mac survey asks lenders about popular combinations of rates and points they are offering to a borrower who has good credit and a 20% down payment or, in refinance transactions, 20% equity in the home. Mortgage professionals say well-qualified borrowers often can find slightly better deals by shopping around.
Freddie Mac said the rate for a 15-year fixed home loan averaged 4.40% this week with 0.7% in points and fees, up from 4.33% last week.
The five-year Treasury-indexed hybrid adjustable-rate mortgage, which has a fixed rate for five years and then becomes variable, averaged 4.16% this week, up slightly. The one-year Treasury-indexed ARM, which adjusts annually, averaged 4.15%, down slightly.
-- E. Scott Reckard