Mortgage rates continued their upward march this week, with the average rate for a 30-year fixed-rate mortgage (FRM) rising to a seven-year high of 4.94%, up from 4.83% the previous week, Freddie Mac reports.
A year ago at this time, the 30-year FRM averaged 3.90%.
According to the firm’s Primary Mortgage Market Survey, the average rate for a 15-year FRM was 4.33%, up from 4.23%. A year ago at this time, the 15-year FRM averaged 3.24%.
The average rater for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 4.14%, up from 4.04%. A year ago at this time, the five-year ARM averaged 3.22%.
“The economy continued to show resilience as strong business activity and growth in employment drove the 30-year fixed mortgage rate to a seven year high of 4.94 percent – up 11 basis points from last week,” says Sam Khater, chief economist for Freddie Mac, in a statement.
“Higher mortgage rates have led to a slowdown in national home price growth, but the price deceleration has been primarily concentrated in affluent coastal markets such as California and the state of Washington,” Khater adds. “The more affordable interior markets – which have not yet experienced a slowdown home price growth – may see price growth start to moderate and affordability squeezed if mortgage rates continue to march higher.”