WASHINGTON, March 24 (Xinhua) -- The U.S. mortgage rates increased this week on inflationary and ongoing geopolitical concerns, according to the Primary Mortgage Market Survey released on Thursday by Freddie Mac. Freddie Mac said that 30-year fixed-rate mortgage (FRM) rose to 4.81 percent for the week ending March 24, 2011, up from last week when it averaged 4.76 percent. Last year at this time, the 30-year FRM averaged 4.99 percent. The 15-year FRM increased to 4.04 percent, up from the previous week's 3.97 percent. A year ago at this time, the 15-year FRM averaged 4.34 percent. The 5-year Treasury-indexed hybrid adjustable-rate mortgage ( ARM) averaged 3.62 percent, rising from the prior week's 3.57 percent, the company said. Moreover, the 1-year Treasury-indexed ARM averaged 3.21 percent this week, up slightly from last week when it averaged 3.17 percent. "Mortgage rates were up this week compared to last, but still remain at relatively low levels. The rate uptick was related to higher than anticipated inflation data for February and ongoing geopolitical concerns," said Frank Nothaft, vice president and chief economist of Freddie Mac. "The 12-month growth rate in the consumer price index rose 2.1 percent in February, compared to 1.6 percent in January." The U.S. housing market recovery experienced a setback at the start of this year, with sales of existing homes and new homes all dropping in February. However, low mortgage rates haven't been enough to stimulate the U.S. housing market. To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Freddie Mac was established by the U.S. Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets.
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