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Freddie Mac: 30-Year Fixed Rate Mortgage Rises To 4.48 Percent

Wall Street analysts and economist are positive that economic growth will continue in 2014. The Federal Reserve announced in December that it would start tapering its $85 billion monthly bond-buying program and reduce its efforts to lower interest rates.

Freddie Mac: 30-Year Fixed Rate Mortgage Rises To 4.48 Percent

Freddie Mac: Average mortgage interest rates increase

Given the continuous growth of the economy and the action of the Federal Reserve, there is a big possibility that the borrowing cost for home buyers will increase. The average interest rate for a 30-year-fixed-rate-mortgage (FRM) increased to 4.48%, according to the latest results of the Primary Mortgage Survey (PMMS) conducted by Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) today.

According to the government controlled mortgage giant, the average interest rate for the 30-year fixed-rate mortgage (FRM) last week was 4.53%.  During the same week a year ago (week ending January 2), the average 30-year FRM was only 3.34%.

The survey also showed that lenders are offering an average interest rate of 3.55% for a 15-year FRM this week, up from 3.52% last week. During the same period a year earlier, the median interest rate was 2.64%.

Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) also reported that the interest rate for a 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) rose to 3.05% from 3% and the average interest rate for 1-year Treasury-indexed ARM dropped to 2.56% from 2.57%.

Stronger economic recovery

In a statement, Frank Nothaft, vice president and chief economist at the Freddie Mac / Federal Home Loan Mortgage Corp (OTCBB:FMCC) said, “Mortgage rates edged up to begin the year on signs of a stronger economic recovery.”  Nothaft added that the pending home sales index climbed by 0.2% in November after five consecutive months of decline.

He also noted that the Conference Board reported that the consumer confidence in December increased and data from the S&P/Case-Shiller showed that the prices of homes in 20 cities jumped 13.6 over the past twelve months the ended October 2013.