U.S. Mortgage Rates Trend Higher

WASHINGTON, Feb.1 -- U.S. mortgage rates continued to move higher amid the rebounding housing market, according to the Primary Mortgage Market Survey released on Thursday by Freddie Mac.

The mortgage giant said the 30-year fixed-rate mortgage (FRM) edged up to 3.53 percent in the week ending Jan. 31, the highest level since September 2012.

The 15-year FRM, a popular choice for those looking to refinance, climbed to 2.81 percent from 2.71 percent. Both were up slightly from the record lows of 3.31 percent and 2.63 percent, but remained at an affordable level for house buying and refinancing.

In addition, the five-year Treasury-indexed hybrid adjustable- rate mortgage (ARM) rose to 2.70 percent, while the one-year Treasury-indexed ARM increased to 2.59 percent.

"Mortgage rates continue to trend upwards this week amid a growing economy led in part by the recovering housing market," said Frank Nothaft, vice president and chief economist of Freddie Mac.

Recent data indicate that the housing sector has become a bright spot in the U.S. economy since home prices began to climb in 2012 following years of historic declines.

The residential investment contributed nearly 0.4 percentage points to real gross domestic product growth in the fourth quarter of last year, U.S. Commerce Department said on Wednesday.