Mortgage Rates Edged Higher

Mortgage rates rose early this week, with Freddie Mac’s survey showing lenders offering 30-year fixed-rate loans to solid borrowers at 4.37%, up from 4.28% a week earlier.

The average rate for a 15-year fixed home loan rose from 3.32% to 3.38%, according to Thursday's report, and the start rate also rose for variable-rate loans with an initial five years at a fixed rate.

The average fee for a 30-year mortgage declined to 0.6 point from 0.7 point last week. The fee for a 15-year loan was unchanged at 0.6 point.

The average rate on a one-year adjustable-rate mortgage fell to 2.48% from 2.52%. The average fee rose to 0.4 point from 0.3 point. The average rate on a five-year adjustable mortgage increased to 3.09% from 3.03%. The fee held steady at 0.4 point.

The increase was driven by speculation that the Federal Reserve would reduce its $85 billion-a-month bond purchases, which have helped keep long-term interest rates low. Deeming the economy to be gaining strength, the Fed announced in December and January that it was reducing its monthly bond purchases.

Mortgage rates tend to follow the yield on the 10-year Treasury note. The 10-year note traded at 2.73% Wednesday, up from 2.71% a week earlier.