Mortgage Rates Edge Up on Good News

By Kyle Chezum Updated on 9/25/2013

For the week ending March 9th, mortgage rates climbed on almost every loan product.  This move was primarily based on the better than expected jobs data and increasing bond yields.  

The 30-year fixed mortgage rate reached 3.92% for the week ending March 15.  This was actually up 0.04% from the earlier week but down from 4.76% in the same period 2011. based of Freddie Mac.

The 15-year fixed mortgage rate hit 3.16%, which was up from 3.13% in the previous week, and down from 3.97% in the same period in 2011.

The 1-year ARM (adjustable-rate mortgage) which is based on Treasury notes rose to 2.79%.  This was while the 5-year ARM rose to 2.83% from 2.81% last week and down from 3.57% in 2011.

The positive and better than expected employment report for February caused U.S. Treasury bond yields to rise and soon the mortgage rates followed.  There were 227,000 new jobs created. This was above the market forecast.  There were also positive revisions to January and December.

Helping the economy and the real estate market are also some new government sponsored programs such as the HARP II Refinance Program which will help with refinancing of underwater homeowners.