Mortgage rates moved upward for a second consecutive week, with the average rate for a 30-year fixed-rate mortgage at 4.54%, up from 4.52% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the 30-year fixed-rate mortgage averaged 3.78%.
“Borrowing costs may be slowly on the rise again in coming weeks, as investors remain optimistic about the underlying strength of the economy,” says Sam Khater, chief economist for Freddie Mac, in a statement. “It’s important to note that rates are now up three-quarters of a percentage point from last year and home prices – albeit at a slower pace – are still outrunning rising inflation and incomes.
“This weakening in affordability is hindering many interested buyers this fall, even as the robust economy brings them into the market,” Khater adds. “The good news is that purchase mortgage applications have recently rebounded to above year ago levels.”
For the week ended Sept. 6, the average rate for a 15-year fixed-rate mortgage was 3.99%, up from 3.97% the previous week. A year ago at this time, the 15-year fixed-rate mortgage averaged 3.08%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.93%, up from 3.85%. A year ago at this time, the five-year ARM averaged 3.15%.