Mortgage rates inch up in response to good economic data

Mortgage rates have begun to inch up as a result of continued signs of a strengthening economic recovery. Jeff Clabaugh of the Washington Business Journal reports:

Freddie Mac says a 30-year fixed-rate mortgage averaged 3.63 percent in the week ending March 14, up from 3.52 percent last week. A 15-year fix averaged 2.79 percent, up from 2.76 percent. A one-year adjustable-rate mortgage rose to 2.64 percent from an average 2.63 percent last week. "Fixed mortgage rates rose this week on signs of job growth and consumer spending," said Freddie Mac (OTC: FMCC) Chief Economist Frank Nothaft.

Kathy Orton, The Washington Post's real estate blogger, notes Nothaft gave last week's strong job growth report and consumer spending for the rise in the rates. “The economy added 236,000 new workers in February, which helped push down the unemployment rate to 7.7 percent,” Nothaft said in a statement. “This helped offset the effects of the payroll tax holiday expiration and led to a 1.1 percent increase in retail sales, which was well above the market consensus forecast.”

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