After decreasing slightly the previous week, fixed mortgage rates reversed course and jumped to their highest level so far this year, due mainly to ongoing volatility in the bond markets, according to Freddie Mac's Primary Mortgage Market Survey.
For the week ended July 16, the average rate for a 30-year fixed-rate mortgage (FRM) was 4.09%, up from 4.04% the previous week. A year ago at this time, the 30-year FRM averaged 4.13%.
The average rate for a 15-year FRM was 3.25%, up from 3.20% the week prior. A year ago at this time, the 15-year FRM averaged 3.23%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.96%, up from 2.93%. A year ago, the five-year ARM averaged 2.97%.
The average rate for a one-year Treasury-indexed ARM was 2.50%, unchanged from the previous week. At this time last year, the one-year ARM averaged 2.39%.
‘The crisis in Greece continues to generate volatility in U.S. Treasury yields,’ explains Sean Becketti, chief economist for Freddie Mac, in a statement. ‘The tentative agreement hammered out last weekend gave investors the confidence to pull back a bit from Treasuries. Rates increased about 16 basis points on the 10-year Treasury from last week. As a result, the average rate on a 30-year fixed-rate mortgage rose five basis points this week to 4.09 percent, the highest level since October of last year.’