Floating interest rate

House Prices: Experts Becoming More Optimistic


 

Margaret Szerlip, Newton, MA. Realtor, West Newton Hill, Realtor

 

House Prices: Experts Becoming More Optimistic

This is very good news for the housing market and confirms what we are seeing here in Newton, Brookline, Wellesley….I want to caution sellers that we are experiencing moderate uptick in prices.  I have noticed that after Labor Day at least 25% of listings seem overpriced, and these houses are still sitting on the market unsold, while their competition priced correctly were sold within the week, some with multiple offers above asking.  If you house is not getting any showings, or no second showings, your house is most likely overpriced in comparison to your competition.  When a house is overpriced it is the best advertisement for other houses.

Each quarter, Pulsenomics surveys a

“distinguished panel of over 100 economists, investment strategists, and housing market analysts regarding their 4-year expectations for future home prices in the United States.”

Here are the latest survey results.

Price appreciation/depreciation expected over the next four years:

  • 2012: 2.31%
  • 2013: 2.44%
  • 2014: 3.25%
  • 2015: 3.43%

Fiserv also released a report projecting home prices to appreciate at an average of 3.7% annually over the next five years.

The average pre-bubble (1987-1999) annual appreciation was 3.6%

Margaret Szerlip

617-921-6860  margaretszerlip@gmail.com

 

 

What Does QE3 Mean to Housing?


real estate, newton, ma.  margaretszerlip@gmail.com, best realtor, newton, ma.

 

What Does QE3 Mean to Housing?

Fed Chairman Ben Bernanke announced last week that the Fed would again be pumping money into mortgage-backed-securities as a way to stimulate the economy. The big question for us becomes what impact this will have on the housing market. There is absolutely no doubt that Bernanke had the housing industry in mind while making this decision. In his post meeting news conference Bernanke explained:

“I think that house prices are beginning to rise in some markets, which will encourage people to look at homes, will encourage lenders to make more mortgage loans. I am hoping we will continue to see progress in the housing market. That is one of the missing pistons in the engine here, housing is usually a big part of a recovery process. We haven’t had that nearly to the usual extent. And to the extent that we can support housing I think that would be a very useful outcome.”

How does keeping rates low help the market?

HSH Associates which reports on trends in the mortgage rate environment explains:

“Of all the Fed policies, driving down mortgage rates has arguably been the most successful. Low rates have fostered refinancing, putting money in homeowner pockets and helping to spur consumer spending. Those low rates have enhanced housing affordability, while the steadying aspect of the Fed’s presence in the market has allowed for more of those transactions to complete; in turn, this has helped to firm up home prices. The Fed is trying to cause at least some inflation, namely in asset prices — homes, stocks.”

But what impact will it actually have on home sales?

Keeping interest rates low will definitely help. However, we are not sure it will be a driving force in a housing recovery. Rates are already at historic lows and  the challenge to many buyers is availability of mortgage money more than it is the cost of that money (rate). HSH Associates believes:

“Looking across the potential audiences who want to buy homes, can a claim be made that interest rates are an impediment? More likely, credit ruined in the downturn, a lack of income, unemployment or even asset strength are keeping people out of the market. In addition, there is arguably a cohort which cannot participate due to a foreclosure, short-sale or deed-in-lieu effected over the last few years, and there is likely still another group who will not buy a home at all, having watched family and friends suffer mightily with real estate issues and losses in the downturn. In this way, lower interest rates aren’t much of an inducement for a lot of folks, and except at the margins, the change merely enhances the opportunity for people already well-positioned and motivated to buy a home.”

Richard Green, director of the University of Southern California Lusk Center for Real Estate, echoed this sentiment in a recent MarketWatch article:

“While QE3 certainly won’t hurt the housing market, its short-term effect will likely be limited. The constraint that is keeping people out of the housing market is absence of equity. The drop in house prices means that many borrowers are underwater on their houses, and high unemployment has prevented potential first-time buyers from accumulating down payments.”

Keeping rates low can’t hurt the market and perhaps it will encourage some move-up buyers to make the move now. But few believe it will spur a dramatic increase in home sales.

 

Mortgage News: Taking Advantage of Low Rates


Newton, MA.  real estate,  Newton, MA.  homes for sale, Newton, MA.  seller’s agent, Newton, MA.  Top Realtor
Mortgage News 
Taking Advantage of Low Rates
By VICKIE ELMER of The NYT – 6/14/12

The mortgage market seems to have been dancing its own version of the limbo, as interest rates headed lower and lower for six consecutive weeks.

 
Although they inched up this past week, home buyers and refinancers may be wondering how low rates can go — and how they can capture the best rates now.

“Mortgage rates tend to fall when there are concerns about the economy,” said Jed Kolko, the chief economist for Trulia, the housing information Web site.

Lately, those concerns have centered on the economic and fiscal woes in Europe, especially in Greece and Spain — along with slow job growth and weaker-than-usual corporate profits in this country, as noted in a recent Freddie Mac market survey.

Many economists are forecasting that mortgage rates will rise again later this year as the American economy gradually improves and as more global investors turn to the United States as a safe haven for their money.

“It’s really tough for rates to go much lower,” said Cristian de Ritis, the director of Moody’s Analytics. “It’s almost unbelievable that you can get a 30-year mortgage at that rate.”

The average rate on a 30-year fixed-rate mortgage fell to a record 3.67 percent nationwide in Freddie Mac’s June 7 survey, though it rose to an average 3.71 percent on Thursday. The rate had averaged 3.9 percent just three months earlier and 4.5 percent a year earlier.

Mr. Kolko said the uptick was not entirely unexpected. “We’re in the midst of so much short-term uncertainty,” he said, adding that “no single week-over-week change can be taken as the start of a long-term trend.”

Mr. de Ritis said that rates could possibly fall further, perhaps as much as a quarter of a percentage point, but he added that it was more likely that they would start “a slow drift” upward. In six months, the rate on the 30-year fixed-rate mortgage could be at 3.8 to 3.9 percent, he predicted, and a year from now, 4.1 to 4.2 percent.

“If the economy does recover more aggressively than what we think, or what investors think,” he said, “then the Fed will likely raise rates.” The next two Federal Reserve Open Market meetings, which determine credit policy, are scheduled for June 19 and 20 and July 31 and Aug. 1.

Those planning to refinance or buy a home in the next two or three months, meanwhile, might want to consider locking in their mortgage rate now.

Borrowers with rate lock-ins, with a built-in deadline, often receive priority treatment from lenders, according to Russell Tucker, a senior vice president of Investor Home Mortgage in Short Hills, N.J. By having a lock-in, he said, a borrower is telling the lender that he or she is serious about closing soon. “If you’re not willing to lock in the interest rates,” Mr. Tucker said, “you’re not doing the push-ups.”

Lock-in costs and policies vary widely, and are based partly on the time frame you want covered.

Most people will need a 60- to 90-day lock. In New York State, especially, refinancing can take longer if the borrower is transferring the balance on a loan to a new lender to avoid paying a second mortgage transfer tax, a process known as “mortgage assignment.”

If interest rates continue to fall during the lock period, borrowers can ask their lenders to rewrite the rate lock, at an additional cost, or they can obtain a “float-down” provision in the original agreement, industry experts say. A lock with a float-down agreement allows the borrower to change the rate, often only once, before closing on the mortgage. This option is generally more expensive than a standard lock.

Although mortgage rates are at historic lows, borrowers need to understand that the advertised rates are generally for those with the best credit. “If your credit is in the mid-600s instead of the mid-700s, that could be as much as an extra percentage point on your mortgage rate,” Mr. Kolko said, referring to the widely used FICO credit score.

And if you’re in the New York area and borrowing more than $625,500 — the maximum allowed for loans resold to Fannie Mae or Freddie Mac — you will be obtaining a “jumbo” loan, which tends to carry higher rates.

Buying a Home? The COST Is More Important Than the PRICE


Newton, MA.  homes for sale

Best Realtor, Newton, MA.

We have often advised buyers to look at the COST of purchasing a house more than the PRICE of the home. Obviously, price is part of the cost equation. The other piece, assuming you are not an all cash buyer, is the mortgage rate. The mortgage rate to finance a purchase can have a dramatic impact on the overall cost. Recently, there are more people talking about the possibility that mortgage rates could begin to increase.

HSH.com studies trends in mortgage rates. They explain:

“A better economic climate almost always brings higher rates, and a lessening of the troubles in Europe from massive central bank assistance adds to the movement of money from safe havens to more risky assets, driving rates upward.”

Dan Green of The Daily Market Reports recently stated:

“The Fed sees growth coming faster than originally expected. There’s suddenly less chance that the Federal Reserve will intervene to help keep mortgage rates low. Absent Fed intervention, mortgage rates are apt to rise and Wall Street is now betting that the Fed has bowed out. With no stimulus, mortgage rates rise.”

Lawrence Yun, chief economist for the National Assoc of Realtors, recently wrote:

“Mortgage rates will be starting to rise. From the 3.9 to 4.0 percent average rate in the past five months on a 30-year fixed mortgage, the new rates will soon be in the range of 4.3 to 4.6 percent.”

Yun explains his logic here.

We do not attempt to predict future interest rates. We leave that up to the experts in the field. However, we want our readers to understand the potential impact on the cost of purchasing a home if they do rise. Here is a simple table that shows, even if the PRICE of a home softens, the COST of a home could increase.

Bottom Line

Many purchasers think they should wait until they are sure that prices have hit bottom. Deciding whether or not to wait should be determined by where the COST of a home is headed.

Newton, MA. Home Sellers…Please List Your House!


Newton, MA. homes for sale  Realtor — Real Estate, Newton, MA.

Home Sellers…there is a complete shortage of inventory!  If you were thinking about listing, now is the time!!

617-921-6860

 

Newton Real Estate Market – A Snapshot


Newton, MA. A Real Estate Snapshot

There are currently:

236 Single Family Homes Listed for Sale, average list price is $1.164M with a marketing time of 109 days

60 homes are currently under agreement, average list price is $953K and a marketing time of 98 days

40 homes have sold in the past month averaging $830K and a marketing time of 83 days.

What do these numbers mean?  I feel that these numbers are a clear reflection of seller reality, or lack thereof.   The average list price in a stable market is much closer to the average sale price.  Currently we have a 300K spread between average list and average sold.   It is my opinion that we are still in a declining market.  While I do not think Newton real estate prices will drop precipitously we are probably looking at a 3-5% reduction.  It is worth noting that the high-end market (2.5M+)  appears to be strong in the western suburbs.

Mortgage Rates…..Best Ever!


Newton, MA.

Mortgage Rates: Path Paved

Mortgage rates improved last week amidst an atmosphere of major market uncertainty.

It wasn’t until Friday though, after exceedingly weak economic data, that consumer borrowing costs really rallied. This surprising positive development followed 10 straight sessions of unfriendly directional behavior. All of that negativity was essentially erased on Friday, leaving rates just above their best levels of the year.  CHECK OUT THE CHART

The rally didn’t end there though.  Over the weekend our nation’s political “leadership” finally put aside partisan opinions and came to an agreement on a long-term budget plan. Combine that with another round of unexpectedly weak economic data this morning and we’re looking at new 2011 consumer borrowing cost lows.

CURRENT MARKET*: The BestExecution conventional 30-year fixed mortgage rate has improved to 4.50%. Some lenders are even offering 4.375% but that quote carries with it additional closing costs.  On FHA/VA 30 year fixed BestExecution is 4.375% with some lenders willing to go as low as 4.25% (extra closing costs).  15 year fixed conventional loans are best priced at 3.75%. Five year ARMs are best priced at 3.25%. It’s important to point out an increased amount of variation in what individual lenders are quoting as their BestExecution rates.  This is a factor of volatility in the secondary mortgage market.  Unfortunately when volatility picks up in the secondary mortgage market, the cost of doing business get more expensive for lenders (hedging costs go up as lock desks peel off coverage at higher MBS prices). Those added costs are usually passed down to consumers.

THE WEEK AHEAD: With drama dying down over the debt ceiling debate and a U.S. default off the table, markets are ready to shift their attention back to economic fundamentals, which have been generally supportive of lower mortgage rates lately.  And while plenty of indicators do have the potential to improve the overall economic outlook,  they’re more than likely going to confirm a dour situation and keep a lid on rising mortgage rates. The most influential data-point of the week comes on Friday morning, with the release of the July Employment Situation Report. CHECK OUT THE FULL ECON CALENDAR

PREVIOUS GUIDANCE:   Floating in this environment is a crapshoot. Both stocks and bonds are maneuvering through major market uncertainties. Investors are focused on news headlines regarding U.S. budget issues, EU debt contagion concerns, economic data, and quarterly earnings. That puts the direction of mortgage rates at the mercy of factors that don’t exactly adhere to schedules or expectations. While we still view underlying economic fundamentals as being supportive of lower mortgage rates in the future, the short-term risks associated with a potential U.S. debt default leave us more inclined to advise locking, especially deals that must be ready to close in the next 10-15 days. This provides protection from rising rates and still gives your lender a chance to negotiate if rates decline.

NEW GUIDANCE: Floating in this environment is still a crapshoot, especially in the short-run,  but barring an unexpected turn of events on Capitol Hill, a path has been paved for our longer-term mortgage rate outlook to come true. That means we see lower mortgage rates in the not so distant future. It may not be a direct path lower though, there will be ups and downs along the way. Be prepared for continued volatility.

CAUTION: MND guidance is speculative in nature. We don’t have a crystal ball, we can’t predict the future, we can only share our outlook. Making the following considerations extra important……………………

What MUST be considered BEFORE one thinks about capitalizing on a rates rally?

1. WHAT DO YOU NEED? Rates might not rally as much as you want/need.
2. WHEN DO YOU NEED IT BY? Rates might not rally as fast as you want/need.
3. HOW DO YOU HANDLE STRESS? Are you ready to make tough decisions?

—————————-

*BestExecution is the most cost efficient combination of note rate offered and points paid at closing. This note rate is determined based on the time it takes to recover the points you paid at closing (discount) vs. the monthly savings of permanently buying down your mortgage rate by 0.125%.  When deciding on whether or not to pay points, the borrower must have an idea of how long they intend to keep their mortgage. For more info, ask you originator to explain the findings of their “breakeven analysis” on your permanent rate buy down costs.

*Important Mortgage Rate Disclaimer: The BestExecution loan pricing quotes shared above are generally seen as the more aggressive side of the primary mortgage market. Loan originators will only be able to offer these rates on conforming loan amounts to very well-qualified borrowers who have a middle FICO score over 740 and enough equity in their home to qualify for a refinance or a large enough savings to cover their down payment and closing costs. If the terms of your loan trigger any risk-based loan level pricing adjustments (LLPAs), your rate quote will be higher. If you do not fall into the “perfect borrower” category, make sure you ask your loan originator for an explanation of the characteristics that make your loan more expensive. “No point” loan doesn’t mean “no cost” loan. The best 30 year fixed conventional/FHA/VA mortgage rates still include closing costs such as: third party fees + title charges + transfer and recording. Don’t forget the fiscal frisking that comes along with the underwriting process.

79 Prince Street, West Newton


Open House Sunday from 12-2 at 79 Prince Street….renovated and stylish!

KLK SOTHEBY’S INTERNATIONAL REALTY

View Previous Photo 23 Photos View Next Photo
MLS # 71251698 – Active
Single Family – Detached
79 Prince St List Price: $1,499,000
Newton, MA 02465-2632
Middlesex County
Style: Colonial Color: Sage
Total Rooms: 9 Bedrooms: 5
Full/Half/Master Baths: 3/1/Yes Fireplaces: 1
Grade School: Peirce Middle School: Day
High School: Newton North
Neighborhood/Sub-Division: West Newton Hill
Directions: Corner of Prince and Fairfax. Front entrance on Fairfax
Remarks
Phenomenal West Newton Hill street with a house to match! This stylish colonial is attractively sited on a corner lot with mature landscaping. The sunny eat-in-kitchen is loaded with state of the art of appliances. The living, dining and family room have abundant light with outdoor access. Convenient first floor bedroom with private bath and high end finishes. Four bedrooms and two baths are on the 2nd floor including a master suite with walk-in closet and spa like bath.
Property Information
Approx. Living Area: 3211 sq. ft. Approx. Acres: 0.21 (8950 sq. ft.) Garage Spaces: 0  —
Living Area Includes: Heat Zones: 2  Forced Air, Gas Parking Spaces: 2  Off-Street
Living Area Source: Public Record Cool Zones: 2  Central Air Approx. Street Frontage: 80 ft
Living Area Disclosures: Includes 336 square feet of finished LL
Room Levels, Dimensions and Features
Room Level Size Features
Living Room: 1 13×23 Fireplace, Hard Wood Floor, Bay / Bow / Box Window(s)
Dining Room: 1 13×12 Hard Wood Floor, French Doors
Family Room: 1 14×12 Hard Wood Floor, French Doors
Kitchen: 1 15×18 Hard Wood Floor, Dining Area, Stone / Granite / Solid Countertops, Custom Built Closet / Cabinets, Wood Floor
Master Bedroom: 2 13×19 Full Bath, Walk-in Closet, Hard Wood Floor, Custom Built Closet / Cabinets
Bedroom 2: 2 16×12 Hard Wood Floor
Bedroom 3: 2 14×10 Hard Wood Floor
Bedroom 4: 2 12×12 Hard Wood Floor, Balcony /Deck
Bedroom 5: 1 14×12 Full Bath, Half Bath, Hard Wood Floor, Marble Flooring
Bath 1: 1 Half Bath
Bath 2: 1 Full Bath
Bath 3: 2 Full Bath, Stone / Ceramic Tile Floor
Laundry: B
Game Room: B 12×28
Foyer: 1 Hard Wood Floor
Mud Room: 1
Features
Appliances: Range, Dishwasher, Disposal, Refrigerator, Freezer, Washer, Dryer, Vent Hood
Area Amenities: Public Transportation, Golf Course, Highway Access, House of Worship, Public School
Basement: Yes   Full, Partially Finished
Beach: No
Construction: Frame
Electric: 110 Volts, 200 Amps
Energy Features: Insulated Windows, Storm Doors
Exterior: Wood
Exterior Features: Patio, Balcony, Prof. Landscape, Sprinkler System
Flooring: Wood, Marble
Foundation Size: 999
Foundation Description: Poured Concrete
Hot Water: Natural Gas
Insulation: Partial
Interior Features: Cable Available
Lot Description: Shared Drive
Road Type: Public
Roof Material: Asphalt/Fiberglass Shingles
Sewer and Water: City/Town Water
Sewage District: MWRA
Terms: Contract for Deed
Utility Connections: for Gas Range, for Electric Oven
Waterfront: No
Other Property Info
Adult Community: No
Disclosure Declaration: No
Disclosures: Driveway easement..NO showings before broker open
Exclusions: See Brokers: some lighting
Home Own Assn: No
Lead Paint: Unknown
UFFI: Unknown  Warranty Available: Yes
Year Built: 1955  Source: Public Record
Year Built Description: Renovated Since
Year Round:
Tax Information
Pin #: S:32 B:030 L:0006
Assessed: $1,040,900
Tax: $11346  Tax Year: 2011
Book: 49897  Page: 297
Cert: 00145682
Zoning Code: SR1
Map:   Block:   Lot:

Office/Agent Information
Office: Karp, Liberman & Kern Sotheby   (617) 928-1212
Agent: Margaret Szerlip    (617) 921-6860
Team Member: Allison Blank REALTOR   Send  (617) 851-2734

Mortgage Rates: an Update and Explanation


Newton, MA.  Homes For Sale. I’d like to share this article….a must read for everyone looking for a mortgage….

BY ADAM QUINONESA scary setback early in the week had us on the edge of our seats but home loan borrowing costs managed to recover thanks to a “flight to safety” in the bond market. This helped mortgage rates end the week near the same levels they closed at last Friday.

A “flight to safety” happens when investors are nervous about owning risky assets like stocks, but do not want to miss out on earning a return on their funds, so they allocate their money into risk-free government guaranteed U.S Treasury debt to provide a safe-haven and an investment return. As benchmark Treasury yields fall on “flight to safety” buyer demand, prices of mortgage-backed securities move higher in unison. This allows lenders to reprice their rate sheets for the better and gives originators an opportunity to offer fence-sitting borrowers lower mortgage rates or more competitive closing costs.

In the chart of Consumer Rate Quotes below, if the line is moving up, closing costs are rising.  If the line is moving lower, costs are getting cheaper. Sideways mortgage rate behavior followed by an abrupt drop followed by another spell of mostly sideways activity can be seen when looking closer at the chart . More recently however a slight uptrend is noticeable, this is the “scary setback” we referenced above. Costs have however corrected from that slight spike.   Loan pricing is not as aggressive as it was on June 3rd (best day to lock all year so far), but we’re getting closer to those levels again…


The chart above compares the average origination costs (as a percentage of loan amount) for several available mortgage note rates as quoted by the five major lenders. Each line represents a different 30 year fixed mortgage note rate.  The numbers on the right vertical axis are the origination closing costs, as a percentage of your loan amount, that a borrower would be required to pay in order to close on that note rate. If the note rate graph line is below the 0.00% marker, the consumer may potentially receive closing cost help from their lender in the form of a lender credits. If the note rate line is above the 0.00% marker, the consumer should expect to pay additional points at the closing table to cover permanent buydown costs and origination fees. PLEASE SEE OUR MORTGAGE RATE DISCLAIMER BELOW

CURRENT MARKET: The “Best Execution” conventional 30-year fixed mortgage rate is 4.50%. Some lenders may be quoting 4.50% with increased closing costs in the form of origination fees. Some lenders may also be quoting 4.375%, but those offers will definitely carry additional closing costs.  These costs could be worth it to applicants who plan to keep their new mortgage outstanding for long enough to breakeven on the extra upfront costs.  On FHA/VA 30 year fixed “Best Execution”  is 4.25%.  15 year fixed conventional loans are best priced at 3.75%. Five year ARMs are best priced at 3.125% but the ARM market is more stratified and there is more variation in what will be “Best-Execution” depending on your individual scenario.

PREVIOUS GUIDANCE:  This recovery rally is encouraging from a big picture perspective as it keeps the door open for our longer-term bullish mortgage rate bias to extend deeper into the summer months. Still, short-term scenarios should take caution. The past few days provide a perfect example of how quickly unfriendly corrections can occur in the mortgage market. Hopefully these back-ups illustrate why we normally urge defensive short-term stances, even as rates improve.  We may have dodged a bullet, but we’re not out of the woods yet. More bouts of volatility are very possible.

CURRENT GUIDANCE:  There’s a weird feeling in the air. Stocks are teetering on a major technical breakdown and bonds smell fear but are waiting for new guidance to be offered. If stocks fail to mount a recovery rally in the near future, we could be looking at another leg lower in Best Execution mortgage rates. While this “feeling” ties together well with our long-term outlook, it’s still speculative in nature. We say that because the timing of such a move is “at any moment”. And until it happens, stocks are gonna put up a fight. This “scratching and clawing” in equities implies the potential for loan pricing volatility remains high. Remember, it was only three days ago when Best Execution Mortgage Rates were teetering on a shift higher because stocks had put together a decent intraday rally effort. We may have dodged a bullet this week, but we’re not out of the woods yet. The past few days provide a perfect example of how quickly unfriendly fluctuations can occur in the mortgage market.

What MUST be considered BEFORE one thinks about capitalizing on a rates rally?

1. WHAT DO YOU NEED? Rates might not rally as much as you want/need.
2. WHEN DO YOU NEED IT BY? Rates might not rally as fast as you want/need.
3. HOW DO YOU HANDLE STRESS? Are you ready to make tough decisions?

—————————-

“Best Execution” is the most cost efficient combination of note rate offered and points paid at closing. This note rate is determined based on the time it takes to recover the points you paid at closing (discount) vs. the monthly savings of permanently buying down your mortgage rate by 0.125%.  When deciding on whether or not to pay points, the borrower must have an idea of how long they intend to keep their mortgage. For more info, ask you originator to explain the findings of their “breakeven analysis” on your permanent rate buy down costs.

Important Mortgage Rate Disclaimer
: The “Best Execution” loan pricing quotes shared above are generally seen as the more aggressive side of the primary mortgage market. Loan originators will only be able to offer these rates on conforming loan amounts to very well-qualified borrowers who have a middle FICO score over 740 and enough equity in their home to qualify for a refinance or a large enough savings to cover their down payment and closing costs. If the terms of your loan trigger any risk-based loan level pricing adjustments (LLPAs), your rate quote will be higher. If you do not fall into the “perfect borrower” category, make sure you ask your loan originator for an explanation of the characteristics that make your loan more expensive. “No point” loan doesn’t mean “no cost” loan. The best 30 year fixed conventional/FHA/VA mortgage rates still include closing costs such as: third party fees + title charges + transfer and recording. Don’t forget the fiscal frisking that comes along with the underwriting process

WSJ REPORTS MORTGAGE RATES EDGE HIGHER


Mortgage rates mostly edged higher in the latest week, with the average on 30-year fixed-rate mortgages rising slightly to 4.87%, according to Freddie Mac’s weekly survey.

Mortgage rates generally track U.S. bond yields, which move inversely to Treasury prices. Rates have climbed this year after slumping most of last year when prices rallies on economic uncertainty.

Freddie Chief Economist Frank Nothaft noted that rates were little changed after what he called “an encouraging employment report” from the Bureau of Labor Statistics.

The 30-year fixed-rate mortgage averaged 4.87% in the week ended Thursday, up from 4.86% the prior week but down from 5.21% a year earlier. Rates on 15-year fixed-rate mortgages were 4.1%, up from 4.09% the previous week but down from 4.52% a year earlier.

Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 3.72%, up from the prior week’s 3.7% but down from 4.25% a year earlier. One-year Treasury-indexed ARMs were 3.22%, down from 3.26% and 4.14%, respectively.

To obtain the rates, the five-year ARMs required payment of an average 0.6 point and the others required an average 0.7 point. A point is 1% of the mortgage amount, charged as prepaid interest.