Mortgage rates to rise
Week of 1/29/2006
Mortgage lenders, who base rates on Treasury yields, have therefore been forced to begin raising rates.
Demand for mortgages continued to grow during the week ended Jan. 21. According to the Mortgage Bankers Associa-tion, applications to refinance posted a big increase, climbing 7.9 percent, while purchase applications rebounded, rising 6.7 percent. The rate on the 30-year fixed-rate mortgage (based on zero discount points) is now well above 5.875 percent, while the 15-year fixed-rate mortgage is nearing 5.5 percent. The rate on the volatile one-year adjustable-rate mortgage is holding at 4.125 percent.
If the Fed indicates it is almost finished with rate hikes, a rally could send mortgage rates back down.
Mortgage lenders, who base rates on Treasury yields, have therefore been forced to begin raising rates.
Demand for mortgages continued to grow during the week ended Jan. 21. According to the Mortgage Bankers Associa-tion, applications to refinance posted a big increase, climbing 7.9 percent, while purchase applications rebounded, rising 6.7 percent. The rate on the 30-year fixed-rate mortgage (based on zero discount points) is now well above 5.875 percent, while the 15-year fixed-rate mortgage is nearing 5.5 percent. The rate on the volatile one-year adjustable-rate mortgage is holding at 4.125 percent.
If the Fed indicates it is almost finished with rate hikes, a rally could send mortgage rates back down.
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