Mortgage rates jumped by double digits in every category according to Freddie Mac's Primary Weekly Mortgage Survey for the week ended February 2.
Rates were up 11 to 13 basis points, the largest across-the-board increases since the week ended November 3 when rates were up 13 to 18 basis points.
The most recent survey showed average rates for 30-year fixed rates
mortgages increased from 6.12 percent to 6.23 percent. The 15-year
fixed rate product was up 11 basis points to 5.81 percent. In both cases fees
and points remained stable at 0.5.
The 5/1-year ARM increased from 5.75 percent during the week of January 26
to 5.87 percent in the most recent survey. Fees and points were down from 0.6
to 0.5.
The largest increase, albeit by a small margin, was for the 1-year ARM which reached 5.33 percent, an increase of 13 basis points. Fees and points in this category were also up a bit, from 0.6 to 0.7 on average.
While rates have been see-sawing for months, the ARMS have reached new levels. The 5/1 product is at its highest point since Freddie Mac started tracking it at the beginning of 2005. The last time this ARM approached its current level was during the week ended November 17 when it averaged 5.86 percent, one basis point lower than the current price. The 1-year ARM is higher than it has been since the beginning of last year. This could be, overall, good news as it may signal that the yield curve, the difference between short and long term rates, may be returning to more normal levels which economists view as important to consumer confidence.
The Mortgage Banker's Association, in its weekly survey of mortgage activity, reported that 30-year fixed rate mortgages increased from 6.20 percent for the week of January 27 to 6.25 percent for the week ended February 3. Points, including the origination fee, increased 0.06 to 1.23 over the week.
15-year fixed rate mortgages moved from 5.79 percent to 5.84 percent while points increased to 1.28 from 1.22. All data are for 80 percent loan to value originations.
One-year ARMs were unchanged at 5.48 percent and 0.96 including the origination fee in sharp contrast with the information provided by Freddie Mac which is referenced above.
Mortgage applications decreased 1.2 percent on a seasonally adjusted basis from a week earlier but were up 2.2 percent on an adjusted basis. The Market Composite Index, which measures these variations, was down 16.4 percent from the same week in 2004.
The refinance share of mortgage activity decreased to 42.1 percent of total applications from 43.0 percent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 29.8 percent of total applications from 30.5 percent.