In the light of brighter economic movements in the manufacturing as well as non-manufacturing sector, Freddie Mac (NYSE: FRE) published higher 30 year fixed mortgage rates.
According to the results of the Primary Mortgage Market Survey conducted by Freddie Mac every week, the standard 30 year fixed rate mortgages averaged at a higher rate of 4.16% and an average discount of 0.8 points. The rates went up from the previous week, when the 30 year FRMs averaged at a rate of 4.10%. At the same time in 2012, the 30 year fixed rate mortgages averaged at a rate of 3.40%.
In the short term financing department, the 15 year fixed rate mortgages available at Freddie Mac were averaged at a rate of 3.27% and a discount point of 0.7. The rates experienced a hike in comparison to the last week’s results, when the 15 year FRMs averaged at a rate of 3.20%. During the same time last year, the 15 year fixed rate mortgages averaged at a rate of 2.69%.
Coming to the popular 5 year treasury indexed hybrid adjustable rate mortgages, the bank averaged its star ARM products at a rate of 2.96% and an average discount of 0.5 points. The rates have remained unchanged in comparison to the figures ascertained in the previous week’s survey. However, when compared to the rate of ARMs averaged at the same time in 2012, which was 2.73%, there has not been a considerable increase in terms of price points.
As far as the 1 year treasury indexed hybrid adjustable rate mortgages are considered, it is the only category that experienced a downfall in rates, which went down from 2.64% (last week) to 2.61% (current), with an average discount of 0.5 point. At this time of year, in 2012, the 1 year ARMs were averaged at a rate of 2.59%.
Considering the sudden hike in the interest rates and to cover up the previous home loan losses, Freddie Mac has bought a reinsurance policy from the Arch Reinsurance Ltd., thereby expanding its risk-sharing efforts with the help of a government-backed firm. According to the company, the new insurance policy will cover up losses equivalent to $77.4 million that was dedicated to a pool of mortgage loans given away in the third quarter of 2012.
Disclaimer: The advertised rates were submitted by each individual lender/broker on the date indicated. Rate/APR terms offered by advertisers may differ from those listed above based on the creditworthiness of the borrower and other differences between an individual loan and the loan criteria used for the quotes.
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