Freddie Mac reports that U.S. mortgage rates increased to the highest level in a year in the face of a housing market that continues to show strength and the general economy improves. The benchmark 30-year fixed rate mortgage climbed to 3.81 percent from 3.59 percent just a week ago. The 15-year product increased to 2.98 percent compared to 2.77 percent last week. The 5 ½ ARM remained stable at 2.6 percent.
The average mortgage interest rate for a Federal Housing Administration or FHA-insured 30-year fixed rate mortgage rose to the highest level since August last year—at 3.62 percent from 3.53 percent the week before.