Mortgage rates increased for a second week, due mainly to ongoing volatility in the markets stemming from the coronavirus.
According to Freddie Mac’s Primary Mortgage Market Survey, the average rate for a 30-year fixed-rate mortgage was 3.65%, up from 3.36% last week but down significantly from 4.28% a year ago.
The average rate for a 15-year fixed-rate mortgage was 3.06%, up from 2.77% last week but down from 3.71% a year ago.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.11%, up from 3.01% last week but down from 3.84% a year ago.
“Mortgage rates rose again this week as lenders increased prices to help manage skyrocketing refinance demand,” says Sam Khater, chief economist for Freddie Mac, in a statement. “This is expected to be a short-term phenomenon as lenders work through their backlog. On the purchase front, daily loan purchase applications were rising as of mid-February but started to decline last Friday.”