U.S. Mortgage Rates Continue to Climb

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U.S. mortgage rates in the U.S. increased for the second week in a row, according to Freddie Mac. 

The 30-year fixed-rate mortgage averaged 4.33 percent this week, up from last week's 4.28 percent, marking the second week of increases. A year ago at this time the average was 3.56 percent. 

"Mortgage rates crept up further following the uptick in the 10-year Treasury yield as minutes of the Federal Reserve's last meeting indicated little possibility of a pause in the central bank's reduction of bond purchases," Frank Nothaft, vice president and chief economist, Freddie Mac, said in the report. "Housing starts in January fell 16 percent to a seasonally adjusted annual rate of 888,000 units, below consensus forecast. Permits were at a seasonally adjusted annual rate of 937,000 in January, also below consensus."

Rising mortgage rates have been cited as a reason for less home sales and a decrease in home affordability. The Mortgage Bankers Association reported a decrease in mortgage applications yesterday. 

The 15-year fixed-rate mortgage averaged 3.35 percent this week, up from 3.33 percent last week. A year ago at this time, the average was 2.77 percent. 

The one-year treasury-index ARM averaged 2.57 percent, up from 2.55 percent last week.