Mortgage Rates Continue to Rise

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Mortgage rates increased for a fourth straight week, with the average rate for a 30-year fixed-rate mortgage climbing to 4.20%, up from 4.17%, according to Freddie Mac’s Primary Mortgage Market Survey.

A year ago at this time, the average rate for a 30-year was 4.58%.

The average rate for a 15-year fixed-rate mortgage was 3.64%, up from 3.62% the previous week. A year ago at this time, the 15-year averaged 4.02%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.77%, down slightly from  3.78%. A year ago at this time, the five-year ARM averaged 3.74%.

“Despite the recent rise in mortgage rates, both existing and new home sales continue to show strength – indicating the lagged effect of lower rates on housing demand,” says Sam Khater, chief economist for Freddie Mac, in a release. “This, along with improved affordability, should push housing activity higher in the coming months.”

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