Average fixed mortgage rates continued to rise for the third straight week, according to the Primary Mortgage Market Survey released by Freddie Mac.
The 30-year fixed-rate mortgage averaged 4.15% with an average 0.5 point for the week ending Jan. 25. The average increased from the previous week when it averaged 4.04%. Compared to the same week in 2017, the 30-year fixed-rate mortgage rate fell from a 4.19% average.
The average rate for the 15-year fixed-rate mortgage was 3.62%, with an average 0.5 point, an increase from the prior average of 3.49%. The mortgage average 3.4% a year ago at this time.
Rates for the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.52% with an average 0.4 point. The average increased from 3.46% in the prior survey and 3.2% during the same week in 2017.
Freddie Mac Deputy Chief Economist Len Kiefer said expectations of broad-based economic growth drove an increase in the 10-year Treasury yield to its highest level since 2014.
“Mortgage rates, in turn, followed the surge in Treasury yields. The 30-year fixed-rate mortgage jumped 11 basis points to 4.15%, its highest level since March of last year,” he said. “The release of the December existing home sales data confirms that 2017 was the best year for home sales in over a decade. Will 2018 home sales outpace 2017? Homebuyer affordability will be a challenge, with mortgage rates moving higher and robust house price gains across the country. The FHFA reported that house prices increased 6.5% from November 2016 to November 2017, with all regions showing positive 12-month changes.”
Source: Mortgage rates keep climbing