Mortgage rates were back on the rise this week, with the average rate for a 30-year fixed-rate mortgage (FRM) at 4.60%, up from 4.54% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the 30-year FRM averaged 3.93%.
It was the second consecutive week that rates increased overall.
“The higher rate environment, coupled with the ongoing lack of affordable inventory, has led to a drag on existing-home sales in the last few months,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Yesterday, the Federal Reserve passed on raising short-term rates, but with the embers of a strong economy potentially stoking higher inflation, borrowing costs will likely modestly rise in coming months.
“Even with home price growth easing slightly in some markets, mortgage rates hovering near a seven-year high will certainly create affordability challenges for some prospective buyers looking to close,” Khater adds.
The average rate for a 15-year FRM this week was 4.08%, up from 4.02%. A year ago at this time, the 15-year FRM averaged 3.18%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.93%, up from 3.87%. A year ago at this time, the five-year ARM averaged 3.15%.
Meanwhile, the Federal Housing Finance Agency, Freddie Mac’s regulator, recently released data showing that mortgage interest rates increased overall in June.
The average interest rate on conventional, 30-year, fixed-rate mortgages of $453,100 or less, based on closings, was 4.76%, up from 4.71% in May, the FHFA’s data shows.
The effective interest rate – which accounts for the addition of initial fees and charges over the life of the mortgage – on all loans was 4.69%, up from 4.66% in May.
The average loan amount for all loans was $333,900, an increase of $11,800 from $322,100 in May.
