Mortgage rates move up
3/6/2006
Steadily rising yields have forced lenders to raise mortgage rates on most products.
At 4 p.m. EST, average mortgage rates (zero discount points) based on rates collected nationwide were:
The 30-year conventional fixed-rate mortgage at 6.087 percent, up from 6.046 percent on Friday.
The 15-year conventional fixed-rate mortgage at 5.706 percent, up from 5.647 percent on Friday.
Another hike in Treasury yields will likely keep mortgage lenders busy, as they will have to increase rates to keep pace with rising yields. Lenders have to offer investors interest rates that are higher than those on Treasuries, because there is more risk involved in buying mortgage-backed securities than buying Treasuries, which are basically risk-free.
Steadily rising yields have forced lenders to raise mortgage rates on most products.
At 4 p.m. EST, average mortgage rates (zero discount points) based on rates collected nationwide were:
The 30-year conventional fixed-rate mortgage at 6.087 percent, up from 6.046 percent on Friday.
The 15-year conventional fixed-rate mortgage at 5.706 percent, up from 5.647 percent on Friday.
Another hike in Treasury yields will likely keep mortgage lenders busy, as they will have to increase rates to keep pace with rising yields. Lenders have to offer investors interest rates that are higher than those on Treasuries, because there is more risk involved in buying mortgage-backed securities than buying Treasuries, which are basically risk-free.
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