Mortgage rates are climbing again as positive data flows through the economy.
Data from Freddie Mac has indicated fixed rates crept up over the week following two consecutive weeks of declines.
The average 30-year fixed-rate mortgage rose 0.7 points for the week to 4.39%, while 15-year rates saw a similar rise to 3.43%.
While the Federal Reserve’s monetary policy statement this week indicated no immediate plans to taper off its bond buying program, Freddie Mac vice president and chief economist Frank Nothaft said a raft of positive economic data led to the increase in mortgage rates.
“With mortgage rates still relatively low, the housing recovery continues to support the overall economy. May’s S&P/Case Shiller 20-city composite index was up 12.2% from last May and represented the largest annual increase since March 2006. In addition, pending home sales in June hovered near a six-and-a-half year high. Finally, second-quarter GDP growth came in at 1.7% with residential fixed investment contributing 0.4%. This makes it the 11th consecutive quarter housing has made a positive contribution to real GDP growth.”