Mortgage rates averaged 5.11% last week, up from 5%, Freddie Mac reported Thursday.
Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 5.11%. A year ago at this time, the 30-year FRM averaged 2.97%.
“Mortgage rates increased for the seventh consecutive week, as Treasury yields continued to rise,” said Sam Khater, Freddie Mac’s Chief Economist.
“While springtime is typically the busiest homebuying season, the upswing in rates has caused some volatility in demand. It continues to be a seller’s market, but buyers who remain interested in purchasing a home may find that competition has moderately softened.”
Mortgage rates have grown from 3.51% at the beginning of March while home prices remain elevated. The combo has pushed monthly payments up 38% YOY on a home with a 30-year mortgage and 20% down payment.
Despite this, Zillow reports that the pace and volume of sales picked up last month, “showing the depth of the pool of homebuyers willing and able to meet current asking prices.”
“There will be a point when the cost of buying a home deters enough buyers to bring price growth back down to Earth, but for now, there is plenty of fuel in the tank as home shopping season kicks into gear,” said Jeff Tucker, Zillow senior economist.
Additional findings from Thursday’s report:
- 15-year fixed-rate mortgage averaged 4.38% with an average 0.8 point.
- A year ago at this time, the 15-year FRM averaged 2.29%.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.75% with an average 0.3 point.
- A year ago at this time, the 5-year ARM averaged 2.83%.