US 30-year fixed mortgage rate records biggest weekly gain in 26 years

The 30-year fixed-rate mortgage (FRM) in the United States jumped to 4.46 percent in the week ending June 27, hitting the highest level since the week of July 28, 2011. The FRM rate gained 0.53 percentage points from the previous week, the largest weekly increase since the week ended April 17, 1987, according to the Primary Mortgage Market Survey released by Freddie Mac Thursday. The 15-year FRM, a popular choice for those looking to refinance, climbed to 3.50 percent this week from 2.94 percent in the previous week. Meanwhile, the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) increased to 3.08 percent, and the one-year Treasury-indexed ARM edged up to 2.66 percent. "Following Fed chief (Ben) Bernanke's remarks on June 19th about the possible timing of reduced bond purchases, Treasury bond yields jumped over the week and mortgage rates followed," Freddie Mac Vice President and Chief Economist Frank Nothaft said in a statement. Bernanke indicated that the Fed may moderate the pace of its buying later this year and end the purchases around the middle of 2014. The remarks were expected to push mortgage rates higher in the coming months.