The average US fixed mortgage rates took a flight for the second week in a row amid the signs of good economic growth. Freddie Mac (NYSE: FRE), the Virginia-based mortgage lending firm, reported in its latest weekly Primary Mortgage Market Survey that though the benchmark 30 year fixed mortgage rates still reside the historically low levels, the average rates have reached the highest since the week ending September 19.
According to the recent survey results, the best 30 year fixed rate mortgage are now available at an average rate of 4.35%, from its previously held mark of 4.16%, and an average discount of 0.7 points for the week ending November 15, 2013. The rates have touched the highest mark since September 19, when the 30 year FRM loans averaged at a rate of 4.50%. During the same time period, about a year ago, the 30 year fixed rate mortgages averaged at a rate of 3.34%.
Apart from the standard 30 year fixed rate mortgages, the popular 15 year fixed rate mortgage loan schemes also experienced a hike from the last week’s rates, when it averaged at a rate of 3.27%. The 15 year FRM loans are now averaging at a rate of 3.35% and an average discount point of 0.7. About a year earlier, at the same time, the short term versions of the fixed rate mortgages averaged at a rate of 2.65%.
In the adjustable rate mortgage department, Freddie Mac published the 5 year treasury indexed hybrid adjustable rate mortgage loans at an increased average rate of 3.01%, up from the previous week’s results when they averaged at a rate of 2.96%, and a discount point of 0.4. In 2012, during the same time of the year, the 5 year ARM loans were averaged at a rate of 2.74%.
As far as the 1 year treasury indexed hybrid adjustable rate mortgage loans are considered, the survey showed no change in the average results that the aforementioned loan carried the last week. For the current week, the 1 year adjustable rate mortgage loans averaged at the same rate of 2.61% and an average discount point of 0.4. At the same time period last year, the bank averaged the 1 Year ARM plans at a rate of 2.55%.
Following the mooted plan of Fairholme Capital Management to purchase Fannie Mae and Freddie Mac, the investors might sell their preferred shares in the bank at a less value according to the market experts. Bruce Berkowitz, who is leading a group of preferred shareholders who are willing to take over the mortgage guarantee business of Fannie and Freddie, cast the buying proposal as a starting round of negotiations with the US government.
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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