Rising mortgage rates put the brakes on mortgage refinancing last week, according to Freddie Mac. The firm’s weekly survey pegged interest on 30-year fixed mortgages at an average of 5.59 percent – up from 5.29 percent last week and the highest rate since November 2008. This is the third straight week of significant rises, in fact, 30-year fixed mortgages are 15 percent higher than just 3 weeks ago. It appears that the refinance window has been slammed shut.
Interest climbed to 5.06 percent from 4.79 percent for 15-year fixed loans; to 5.17 percent from 4.85 percent for five-year, adjustable-rate mortgages; and to 5.04 percent from 4.81 percent for one-year ARMs. Freddie Mac chief economist Frank Nothaft said the gains are not yet affecting home purchase loans. The number of Nashville home loan applications did rise this week for the 3rd straight week.