Mortgage rates hit new highs for the year during the week ended July 2, according to Freddie Mac's Primary Mortgage Market Survey.
The average rate for a 30-year fixed-rate mortgage (FRM) was 4.08%, up from 4.02% the previous week. A year ago at this time, the 30-year FRM averaged 4.12%.
The average rate for a 15-year FRM was 3.24%, up from 3.21% the week prior. A year ago at this time, the 15-year FRM averaged 3.22%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.99%, up from 2.98%. A year ago, the five-year ARM averaged 2.98%.
The average rate for a one-year Treasury-indexed ARM was 2.52%, up from last week's 2.50%. At this time last year, the one-year ARM averaged 2.38%.
‘Overseas events are generating significant day-to-day volatility in interest rates,’ says Sean Becketti, chief economist for Freddie Mac, in a release. ‘Nonetheless, the week-to-week impact on most rates was modest – the 30-year mortgage rate increased just six basis points, to 4.08 percent. The [Mortgage Bankers Association's] composite index of mortgage applications fell 4.7 percent in response to what is now three consecutive weeks of mortgage rates over 4 percent.’
‘Other measures, however, confirmed continued strength in housing,’ he adds. ‘Pending home sales rose 0.9 percent, exceeding expectations, and the Case-Shiller house price index recorded another solid increase.’