March 26, 2010 / 4:24 PM / 10 years ago

US 30-yr mortgage rates jump in latest wk-Zillow

NEW YORK, March 26 (Reuters) - Interest rates on 30-year fixed-rate mortgages jumped in the latest week, real estate website Zillow.com said on Friday, a trend that could continue as key support from the government ceases at the end of the month.

Mortgage rates could continue rising when the Federal Reserve, the U.S. central bank, stops buying mortgage-related securities at the end of March, according to Zillow and other analysts.

Mortgage rates for 30-year fixed mortgages, the most widely used loan, were 4.91 percent on Friday morning, up from 4.83 percent the week before, according to Zillow Mortgage Marketplace.

Rates spiked to 4.98 percent on Thursday, but fell slightly Friday morning.

Fifteen-year fixed mortgage rates fell to 4.21 percent Friday morning, down from 4.27 percent in the prior week.

Rates for 5/1 adjustable-rate mortgages, or ARMs, set at a fixed rate for five years and adjustable each following year, were 3.72 percent Friday morning, up from 3.50 percent in the prior week.

Rising mortgage rates do not bode well for the housing market, which remains highly vulnerable to setbacks and heavily reliant on government intervention.

Mortgage rates are linked to yields on Treasuries and yields on mortgage-backed securities.

Treasuries were beaten down this week, primarily by disappointment over poor demand in the government’s auctions of $118 billion of U.S. debt. (Editing by Jeffrey Benkoe) (Reuters Messaging: julie.haviv.reuters.com@reuters.net; email: julie.haviv@thomsonreuters.com; Tel: +1 646 223 6153))

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