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Freddie Mac, Bankrate: Mortgage rates move northward
By Palm Beach Business.com
DELRAY BEACH — Mortgage rates were mixed this week, with the 30-year rising and the 15-year easing southward, according to Freddie Mac. However, the other major national rate surveyor, Bankrate, found rates for both mortgages jumping fairly substantially.
Freddie’s weekly Primary Mortgage Market Survey, released Thursday, had the 30-year fixed-rate mortgage hitting 3.37 percent with 0.7 point, compared to the previous week’s 3.32 percent. Bankrate, meanwhile had the 30-year jumping to 3.62 percent with 0.31 point from 3.52 percent a week ago.
The two surveys had a different take on what was driving rates.
"Mortgage rates were mixed this week following data reports on stable inflation and a thriving home construction market,” Freddie Mac Chief Economist Frank Nothaft said. “The 12-month growth in the core consumer price index has remained between 1.9 and 2.1 percent for the past five consecutive months ending in November. Meanwhile, housing starts averaged the strongest three months in November since September 2008, and homebuilder confidence rose in December to its highest reading since April 2008."
Bankrate pointed a finger at last week’s announcement that the Federal Reserve intended to pour additional stimulus into the economy in order to energize the sluggish jobs market by buying up mortgage-backed securities and keeping interest rates low. Bankrate’s take was the program had just the opposite effect because of fear that the program will stimulate inflation instead of the economy.
Meanwhile, the uncertainty surrounding congressional budget talks and the continuing march to fiscal doomsday should dampen rates, Bankrate said.
The two surveys split on the direction of the 15-year fixed-rate mortgage, with Freddie finding a slight easing to 2.65 percent with 0.7 point from last week’s 2.66 percent. Bankrate found the 15-year moving in the same direction as the 30-year, to 2.89 percent with 0.24 point from 2.85 percent a week ago.
