Mortgage rates nudge slightly higher

Mortgage rates barely increased this week. That did not dissuade borrowers from filling out purchase and refinance applications. The uptick may not last, though. Recent economic data may persuade the Federal Reserve to hold off on rate increases even longer.

"There is no fear of the Fed right now. There is no real worry that rates should be rising in any meaningful way," says Joel Naroff, president of Naroff Economic Advisors. "But if, on Friday, we get better-than-expected job growth and more importantly, a rebound in wage gains, that will put everyone on notice."
Borrowers at the door

The slight increase in mortgage rates this week comes as more borrowers shop for mortgages in hopes of buying homes or refinancing their current loans. The volume of mortgage applications last week rose 4.6 percent from the previous week, according to the Mortgage Bankers Association. Purchase applications were up 6 percent, and refinances grew 4 percent. That was the second straight week of big increases.

"We have been so busy and I expect it to get busier with the warmer weather as we head into April," says John Stearns, a senior mortgage banker with American Fidelity Mortgage in Wisconsin.
Mortgage rates this week
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30 year fixed rate mortgage -- 3 month trend

    The benchmark 30-year fixed-rate mortgage rose to 3.82 percent from 3.8 percent last week, according to the Bankrate.com national survey of large lenders. One year ago, that rate was 4.54 percent. Four weeks ago, it was 3.93 percent. The mortgages in this week's survey had an average total of 0.27 discount and origination points. Over the past 52 weeks, the 30-year fixed has averaged 4.14 percent. This week's rate is 0.32 percentage points lower than that 52-week average.
    The benchmark 15-year fixed-rate mortgage rose to 3.06 percent from 3.04 percent.
    The benchmark 5/1 adjustable-rate mortgage fell to 3.1 percent from 3.14 percent.
    The benchmark 30-year fixed-rate jumbo rose to 3.93 percent from 3.92 percent.


Read more: http://www.bankrate.com/finance/mortgages/mortgage-analysis-040215.aspx