U.S. fixed mortgage rates rising to 10-month high

U.S. fixed mortgage rates surged to a ten-month high as ten-year Treasury yields increased, said the Primary Mortgage Market Survey released Thursday by Freddie Mac.

The U.S. mortgage giant said the 30-year fixed-rate mortgage ( FRM) was 4.09 percent in the week ending Thursday, up from the rate of 4.04 percent last week, lower than the rate of 4.13 percent a year ago. "Rates rose about 16 basis points on the 10-year Treasury from last week. As a result, the average rate on a 30-year fixed-rate mortgage rose 5 basis points this week to 4.09 percent, the highest level since October last year," said Freddie Mac's chief economist Sean Becketti in a statement.

The 15-year FRM, a popular guide for those looking to refinance, was 3.25 percent this week, higher than the rate of 3.20 percent last week.

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) rose to 2.96 percent from 2.93 percent last week, while the one-year Treasury-indexed ARM stayed at 2.50 percent this week, unchanged from last week.

Along with the recovery of the U.S. economy and housing market, current mortgage applications for home purchases have rose to a nearly two-year high level in the United States, according to the data released by the Mortgage Bankers Association earlier this month.