Fixed mortgage rates increased significantly during the week ended June 11, according to Freddie Mac's Primary Mortgage Market Survey.
The average rate for a 30-year fixed-rate mortgage (FRM) was 4.04%, up from 3.87% the previous week. A year ago at this time, the 30-year FRM averaged 4.20%.
It was the first time the 30-year FRM rose above 4% since Nov. 6, 2014, when it averaged 4.02%.
The average rate for a 15-year FRM was 3.25%, up from 3.08% the week prior. A year ago at this time, the 15-year FRM averaged 3.31%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.01%, up from 2.96%. A year ago, the five-year ARM averaged 3.05%.
The average rate for a one-year Treasury-indexed ARM was 2.53%, down from 2.59% the previous week. At this time last year, the one-year ARM averaged 2.40%.
‘Mortgage rates rose above four percent for the first time since November 2014 as Treasury yields surged. Markets are responding to strong employment data,’ says Len Kiefer, deputy chief economist for Freddie Mac, in a release. ‘In May, the U.S. economy added 280,000 jobs. Moreover, job openings surged to 5.4 million in April, up over 20 percent from a year ago.’