Home Loan Interest Rates Jump

Jumping family in home
Home loan interest rates jumped this week to a high for 2013, according to Freddie Mac’s weekly survey.

For the week ending March 14, 2013, the 30-year fixed-rate mortgage (FRM) averaged 3.63 percent with an average 0.8 point, up from last week when it averaged 3.52 percent. A year ago, the 30-year FRM averaged 3.92 percent.

This week’s reading for the 30-year FRM was its highest since Aug. 23, 2012. It has increased, albeit on a fluctuating path, since reaching its record low of 3.31 percent on Nov. 21, 2012.

This week’s 15-year fixed-rate mortgage averaged 2.79 percent with a 0.8 point. The rate is up from last week’s average of 2.76 percent. Last year at this time, the 15-year fixed home loan interest rate averaged 3.16 percent.

“Fixed mortgage rates rose this week on stronger signs of jobs growth and consumer spending,” said Frank Nothaft, Freddie Mac vice president and chief economist.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.61 percent with a 0.6 point this week, down from last week when it averaged 2.63 percent. A year ago, the 5-year ARM averaged 2.83 percent.

The 1-year Treasury-indexed ARM averaged 2.64 percent with a 0.4 point. The rate is up from last week’s average of 2.63 percent. At this time last year, the rate averaged 2.79 percent.

According to the Bureau of Labor Statistics (BLS), the month of February experienced an addition of 236,000 new workers. This large economic addition helped to reduce the unemployment rate to 7.7 percent. The employment increase helped to offset the expiration of the payroll tax holiday.

In addition, retail sales increased 1.1 percent, significantly above the market consensus forecast.