Fixed mortgage rates continued to rise on good news from the economy’s employment sector.
The average rate on the 30-year fixed-rate mortgage (FRM) came in at 3.42 percent, with an average 0.7 point, the week ending Jan. 24, according to Freddie Mac’s weekly Primary Mortgage Market Survey. Last week, the 30-year FRM averaged 3.38 percent, and a year ago, it averaged 3.98 percent.
In the second consecutive week, the number of American’s filing initial claims for unemployment dropped. The filings hover at the lowest level in five years, according to the U.S. Bureau of Labor Statistics.
For the 5-year Treasury-indexed hybrid adjustable rate mortgage (ARM), the average interest rate was 2.67 percent, with an average 0.6 point, unchanged from last week and down from the average 2.85 percent a year ago, Freddie Mac reported.
Finally, for the week ending Jan. 24, Freddie Mac reported the 1-year Treasury-indexed ARM averaged 2.57 percent, with an average 0.4 point, unchanged last week, and down from 2.74 percent a year ago.