Despite volatility in the stock market, mortgage rates inched up slightly this week, with the average rate for a 30-year at 4.86%, up from 4.85%, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the 30-year FRM averaged 3.94%.
In a statement, Sam Khater, chief economist for Freddie Mac, says he expects rates to continue to rise, “which will put downward pressure on home buying activity.”
“While higher borrowing costs will keep some people out of the market, buyers with more flexibility could take advantage of the decreased competition,” Khater says.
For the week ended Oct. 25, the average rate for a 15-year FRM was 4.29%, up from 4.26% the previous week. A year ago at this time, the 15-year FRM averaged 3.25%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 4.14%, up from 4.10%. A year ago at this time, the five-year ARM averaged 3.21%.
