Mortgage rates rose to their highest point since April, hitting 3.05% over the past week, Freddie Mac reported Thursday.
Freddie’s Primary Mortgage Market Survey (PMMS) found that the 30-year fixed-rate mortgage (FRM) averaged 3.05%, up from last week’s 2.99%. A year ago at this time, the 30-year FRM averaged 2.81%
“As inflationary pressure builds due to the ongoing pandemic and tightening monetary policy, we expect rates to continue a modest upswing,” said Sam Khater, Freddie Mac’s Chief Economist.
“Historically speaking, rates are still low, but many potential homebuyers are staying on the sidelines due to high home price growth. Rising mortgage rates combined with growing home prices make affordability more challenging for potential homebuyers.”
Mortgage applications have trended down with increasing interest rates on the horizon. Refinances were down 16% year-over-year this past week.
“We continue to expect weakening refinance activity as rates move higher and borrowers see less of a rate incentive,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting.
Inflation is a growing concern across the economy.The Labor Department’s Consumer Price Index jumped 5.4 percent in September from a year earlier, a 13-year high.
Additional findings from Thursday’s report:
- 15-year fixed-rate mortgage averaged 2.30% with an average 0.7 point, up from last week when it averaged 2.23%.
- A year ago at this time, the 15-year FRM averaged 2.35%.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.55% with an average 0.2 point, up from last week when it averaged 2.52%.
- A year ago at this time, the 5-year ARM averaged 2.90%.