Freddie Mac survey: Fixed mortgage rates rise, reversing course

Here’s a reverse truism from Freddie Mac’s latest mortgage survey: What comes down must eventually go up.

Lenders were offering solid borrowers 30-year fixed-rate home loans at an average interest rate of 3.55% this week, up from 3.49% last week, the big loan buyer said Thursday. The rate on the 15-year fixed mortgage also rose, from 2.8% to 2.83%.

The increase, a reaction to mixed news on Europe’s debt woes and the domestic economy, reversed a powerful downward trend that had set or tied record lows in 13 of the previous 14 weeks.

Freddie Mac asks mortgage lenders early each week what rates they are offering to borrowers with good credit who have down payments of at least 20% or equivalent home equity if they are refinancing.

The lenders provide the rates they would offer to borrowers who pay relatively small amounts in upfront lender fees and points, typically 0.75% of the loan amount or less.

Industry pros say slightly better rates than those in the survey often can be found by the most qualified borrowers who shop around. It’s also possible to lower the interest rate by paying additional discount points to the lender.

Third-party costs often borne by borrowers, such as appraisals and title insurance, are not included in the Freddie Mac surveys.

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