Following its sharp increase last week, the 30-year fixed-rate mortgage (FRM) has jumped six basis points – hitting its highest level in almost three months.
This week’s Freddie Mac Primary Mortgage Market Survey showed that the 30-year FRM reached 3.75%, continuing its uptick from the week prior when it averaged 3.69%. A year ago, the 30-year FRM was 4.86%.
“The outlook for a favorable resolution to the trade dispute between the US and China is still unclear, introducing some volatility into financial markets and the benchmark 10-year Treasury yield,” said Sam Khater, Freddie Mac’s chief economist.
The 15-year FRM edged up from last week’s 3.15% to an average of 3.18%. In 2018 at this time, the 15-year FRM was 4.29%.
Meanwhile, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) soared 25 basis points to an average of 3.4%, up from 3.15% last week and 4.14% the year before.
“Mortgage rates are following suit at near historic lows, while mortgage applications to purchase a home remain higher year over year,” Khater said.