Mortgage rates continued to move upward during the week ended Sept. 20, with the average rate for a 30-year fixed-rate mortgage (FRM) rising to 4.65%, up from 4.60% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the 30-year FRM averaged 3.83%.
It was the fourth consecutive week that rates moved upward – however, rates have been more or less stable for the past several months, moving up and down slightly from week to week.
“Mortgage rates are drifting upward again and represent continued affordability challenges for prospective buyers – especially first-time buyers,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Borrowing costs are moving right now for three main reasons: the very strong economy, higher U.S. government debt issuances and global trade tensions.
“Amidst this four-week climb in mortgage rates, the welcoming news is that purchase applications have risen on an annual basis for five consecutive weeks,” Khater adds. “However, given the widespread damage caused by Hurricane Florence in the Carolinas, the next few months of housing activity will likely be somewhat volatile.”
The average rate for a 15-year FRM this week was 4.11%, up from 4.06%. A year ago at this time, the 15-year FRM averaged 3.13%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.92%, down from 3.93%. A year ago at this time, the five-year ARM averaged 3.17%.