Mort­gage rates in­crease this week

Albuquerque Journal - - BUSINESS -

WASH­ING­TON — U.S. mort­gage rates rose this week as the econ­omy showed signs of strength, which makes it more likely that the Fed­eral Re­serve will raise its short-term rate next week.

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 third straight week to 3.35 per­cent from 3.32 per­cent last week.

Shorter-term rates are ris­ing more quickly than longer-term debt, and the gap be­tween the 30-year mort­gage and five-year has nar­rowed since the sum­mer. As a re­sult, more home­buy­ers are choos­ing the longer-term fixed rate, Fred­die Mac said.

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