Average mortgage rates are on the way back up as recent indicators point to a growing economy, according to data released Thursday by Freddie Mac.
“Mortgage rates edged up this week on signs of a stronger economic recovery,” said Frank Nothaft, Freddie Mac vice president and chief economist.“Real GDP was revised upwards to 2.5 percent growth in the second quarter of this year. In addition, residential construction spending rose for a ninth consecutive month in July. Lastly, the manufacturing industry expanded by the fastest pace in August since June 2011.”
The average rate for the 30-year fixed rate mortgage edged back toward its high mark for the year, climbing from last week’s 4.51% to 4.57% this week, according to Freddie’s Primary Mortgage Market Survey. A year ago, the average rate of the 30-year FRM was 3.55%.
The 15-year FRM also saw an uptick, with the average rate climbing to 3.59% from last week’s 3.54%. Last year, the 15-year FRM’s average rate was just 2.86%.
The 5-year and 1-year Treasury-indexed adjustable-rate mortgages also climbed, with the 5-year ARM spiking to 3.28% from last week’s 3.24%, and the 1-year ARM climbing from 2.64% a week ago to 2.71% this week.