Mortgage rates rose to 3.01% over the past week, Freddie Mac reported Thursday.
Freddie’s Primary Mortgage Market Survey (PMMS) reports the 30-year fixed-rate mortgage (FRM) averaged 2.88 percent. A year ago at this time, the 30-year FRM averaged 2.90 percent.
“Mortgage rates rose across all loan types this week as the 10-year U.S. Treasury yield reached its highest point since June,” said Sam Khater, Freddie Mac’s Chief Economist. “Many factors led to this increase, including the Federal Reserve communicating that it will taper its support of the capital markets, the broadening of inflation and emerging energy supply shortages which compound other labor and materials shortages.”
On Tuesday, both Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen testified before Congress that inflation was running higher than they expected.
“We expect mortgage rates to continue to rise modestly, which will likely have an impact on home prices, causing them to moderate slightly after increasing over the last year,” he added.
Additional findings from Thursday’s report:
- 30-year fixed-rate mortgage averaged 3.01 percent with an average 0.7 point for the week ending September 30, 2021, up from last week when it averaged 2.88 percent. A year ago at this time, the 30-year FRM averaged 2.88 percent.
- 15-year fixed-rate mortgage averaged 2.28 percent with an average 0.6 point, up from last week when it averaged 2.15 percent. A year ago at this time, the 15-year FRM averaged 2.36 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.48 percent with an average 0.3 point, up from last week when it averaged 2.43 percent. A year ago at this time, the 5-year ARM averaged 2.90 percent.