Mortgage rates increased significantly during the week ended Jan. 25, with the average rate for a 30-yer fixed-rate mortgage (FRM) jumping to 4.15%, up from 4.04% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the average rate for a 30-year FRM was 4.19%.
It was the third consecutive week that the average rate increased.
The average rate for a 15-year FRM was 3.62%, up from 3.49%. A year ago at this time, the 15-year FRM averaged 3.4%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.52%, up from 3.46%. A year ago at this time, the five-year ARM averaged 3.20%.
“Rates keep climbing,” says Len Kiefer, deputy chief economist for Freddie Mac, in a release. “The 10-year Treasury yield reached its highest point since 2014, reflecting expectations of broad-based economic growth. Mortgage rates, in turn, followed the surge in Treasury yields. The 30-year fixed rate mortgage jumped 11 basis points to 4.15 percent, its highest level since March of last year.
“The release of the December existing home sales data confirms that 2017 was the best year for home sales in over a decade,” Kiefer adds. “Will 2018 home sales outpace 2017? Homebuyer affordability will be a challenge, with mortgage rates moving higher and robust house price gains across the country. The FHFA reported that house prices increased 6.5 percent from November 2016 to November 2017, with all regions showing positive 12-month changes.”