Mortgage rates jumped in the week ending April 8 in response to last week's late week sell-off in Treasurys related to a better than expected ISM Manufacturing on Thursday, and especially the March employment report on Friday that showed strong private jobs growth.
Freddie Mac reported that both 30- and 15-year fixed mortgage rates surged 13 basis points to 5.21% and 4.52%, respectively. The 30-year fixed rates are at their highest since the week ending August 13, 2009 when it averaged 5.29%.
Adjustable rate mortgages also were higher with 5/1 hybrid ARMs increasing to 4.25% from 4.10%, while one-year ARM rates averaged nine basis points higher to 4.14%.
The rate level is expected to further dampen refinancing activity for the week ending April 9.
Yesterday, the Mortgage Bankers Association reported a 17% drop in the Refinance Index for the week ending April 2 to 2251 in response to higher mortgage rates.
Purchase activity, meanwhile, should see support from the homebuyers tax credit which is set to expire at the end of the month.
