WASHINGTON (AP) — U. S. mortgage rates rose this week as the economy showed signs of strength, which makes it much more likely that the Federal Reserve will raise its short-term rate in a few days.
The rate on the benchmark 30-year fixed-rate mortgage rose to 3. 94 percent from 3. 9 percent last week, mortgage giant Freddie Mac said. The 15-year, fixed-rate mortgage, popular among homeowners seeking to refinance, also increased, rising to 3. 36 percent from 3. 3 percent.
The five-year adjustable mortgage rate rose for the 3rd straight week to 3. 35 %, from 3. 32 percent a week ago.
Shorter-term rates are rising faster than longer-term debt, and the space between the 30-year mortgage and five-year has narrowed since the summer. Consequently, more homebuyers are choosing the longer-term fixed rate, Freddie Mac states.