Mortgage rates follow bond yields on their way up: Freddie Mac

April 08, 2010 03:31PM

Mortgage rates rose this week to their highest levels since August 2009, according to data for the week ending today from Freddie Mac. The government-sponsored mortgage finance giant attributed the increase to a rise in bond yields and the impact of the homebuyer tax credit, set to expire at the end of the month. The 30-year fixed-rate mortgage averaged 5.21 percent for the week, up from last week’s 5.08 percent and from 4.87 percent during the same week last year. Its 15-year counterpart had an average contract interest rate of 4.52 percent — its highest since late December 2009 — up from 4.39 percent last week and down slightly from 4.54 percent during this week last year. Rates for five-year and one-year Treasury-indexed hybrid adjustable-rate mortgages also increased on a week-over-week basis, to 4.25 percent and 4.14 percent, respectively. “Once again, mortgage rates followed bond yields higher amid a positive March employment report,” said Frank Nothaft, vice president and chief economist for Freddie Mac. TRD