Mortgage rates moved higher during the week ended January 18, with the average rate for a 30-year, fixed-rate mortgage (FRM) increasing to 4.04%, up from 3.99% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.
It was the first time since summer 2017 that the the average rate for a 30-year rose above 4%.
A year ago at this time, the average rate for a 30-year FRM was 4.09%.
“The U.S. weekly average for the 30-year fixed mortgage rate rose above four percent for the first time since last summer to 4.04 percent in this week’s survey,” says Len Kiefer, deputy chief economist. “This is the highest weekly average for the 30-year fixed rate mortgage since May of 2017.
“Some may be wondering if this is the last time we’ll see a three handle on the 30-year mortgage rate,” Kiefer says. “Never say never, but inflation is firming, the Federal Reserve’s Beige Book indicates broad-based economic growth and labor markets are tightening. This means upward pressure on long-term rates, like the 30-year fixed-rate mortgage, is building.”
The average rate for a 15-year FRM was 3.49%, up from 3.44%. A year ago at this time, the 15-year FRM averaged 3.34%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.46%, unchanged from last week. A year ago at this time, the five-year ARM averaged 3.21%.