Mortgage rates rose for a fifth straight week from record lows, following the path of yields on government bonds, Freddie Mac reported Thursday.
The average rate on a 30-year fixed-rate loan jumped to 4.83% from 4.61% last week, according to the mortgage giant's survey, which asks what lenders said they are offering well-qualified borrowers with 20% down payments or that much home equity in the case of a refinancing. Lenders were asking for upfront fees averaging 0.7% of the amount borrowed.
Rates on 15-year loans rose to 4.17% from 3.96% last week. Initial rates on adjustable-rate mortgages climbed as well, the survey found.
Anthony Hsieh, founder and chief executive of mortgage lender LoanDepot.com, predicted the average 30-year home loan rate would range from 4.75% to 5.25% in the coming year.
The 30-year average had fallen steadily for seven months before bottoming out Nov. 11 at 4.16%, a record low for the Freddie Mac survey, down from 5.3% on April 8.
In the last five weeks, however, Treasury bond yields, which directly influence mortgage rates, have surged on increasing signs that the economy is strengthening.