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Freddie Mac, Bankrate: Mortgage rates surge

By Palm Beach Business.com

DELRAY BEACH — Mortgage rates shot up over the past week but continue to hover near historic lows.

The 30-year fixed-rate mortgage now averages 3.98 percent with 0.7 point, up from 3.88 percent a week ago, according to Freddie Mac’s Primary Mortgage Market Survey. This was the eighth consecutive week the 30-year has averaged less than 4.00 percent.

Bankrate’s national mortgage survey showed a similar increase, with the 30-year hitting an average of 4.25 percent with 0.31 point, up from 4.18 percent a week ago.
Both surveys are up from record lows.

"Fixed mortgage rates ticked up this week as the housing market ended 2011 on a high note,” Freddie Mac Chief Economist Frank Nothaft said.  “New construction of one-family homes rose 4.4 percent in December to an annualized rate of 470,000, the most since April 2010. Existing home sales increased 5.0 percent at the end of the year to 4.61 million houses, the largest amount since May 2010.

“Furthermore, pending home sales in November and December averaged the highest reading since the March and April 2010 period."

The average 15-year mortgage moved higher as well: Freddie Mac spotted it at 3.24 percent with 0.8 point, up from last week’s 3.17 percent. Bankrate had it at 3.45 percent with 0.30 point, up from 3.39 percent.