Freddie Mac reports that mortgage rates continued to drift higher last week, with average interest of 5.03 percent on a 30-year fixed loan — up from a flat 5 percent the previous week. The government-sponsored enterprise reports that 30-year fixed rates have been hovering around the 5 percent mark mainly due to government intervention. The result has been a refinancing boom, with refis accounting for seven of every 10 mortgages this year. For 15-year fixed loans, this past week’s rate averaged 4.46 percent compared to 4.43 percent a week earlier.
Bankrate.com’s national survey of large lenders put the benchmark 30-year, fixed-rate mortgage at 5.35 percent, up slightly for the third week in a row.
The Mortgage Bankers Association says applications have fallen more than 25 percent in the past two weeks.
[SOURCES: Freddie Mac; Information, Inc.; Bankrate.com]
