“Mortgage rates rose above 4% for the first time since November 2014 as Treasury yields surged,” said Len Kiefer, deputy chief economist for Freddie Mac. “Markets are responding to strong employment data. In May, the U.S. economy added 280,000 jobs. Moreover, job openings surged to 5.4 million in April, up over 20% from a year ago.”
The average interest rate for 30-year fixed-rate mortgages spiked to 4.04% last week, up from the previous week’s 3.87%. Last year at this time, the 30-year FRM averaged 4.20%.
The average rate for 15-year FRMs also jumped from the prior week’s 3,08%, settling at 3.25% last week. Last year, the 15-year FRM averaged 3.31%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage rose to 3.01% from the previous week’s average of 2.96%. A year ago, the 5-year AARM averaged 3.05%.
The 1-year ARM averaged 2.53% last week, down from the prior week’s average of 2.59%. Twelve months ago, the 1-year ARM averaged 2.40%.
Mortgage rates hit an eight-month high last week, according to new data from Freddie Mac.