Mortgage rates moved to the highest level in seven years this week, with the average rate for a 30-year fixed-rate mortgage climbing to 4.90%, up from 4.71% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the 30-year FRM averaged 3.91%.
“In this week’s survey, the 30-year fixed-rate mortgage jumped 19 basis points to 4.90%,” says Sam Khater, chief economist for Freddie Mac, in a release. “Rates are now at their highest level since the week of April 14, 2011.
“Rising rates paired with high and escalating home prices is putting downward pressure on purchase demand,” Khater adds. “While the monthly payment remains affordable due to the still low mortgage rate environment, the primary hurdle for many borrowers today is the down payment and that is the reason home sales have decreased in many high-priced markets.”
The average rate for a 15-year FRM was 4.29%, up from 4.15%. A year ago at this time, the 15-year FRM averaged 3.21%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 4.07%, up from 4.01%. A year ago at this time, the five-year ARM averaged 3.16%.