“Since jumping 11 basis points on May 18, the 10-year Treasury yield has leveled off around 1.85%,” said Freddie Mac chief economist Sean Becketti. “Mortgage rates continued to adjust to this new level with the 30-year fixed rate inching up another two basis points this week to 3.66%. Recent statements by the Fed appear to have persuaded the market that a rate hike may come sooner than later. However, the market is fickle, and Friday’s unemployment report has the potential to swing opinion 180 degrees in the other direction.”
The average rate for the 30-year FRM rose from 3.64% last week to 3.66% this week. Last year at this time, the 30-year FRM averaged 3.87%.
The 15-year FRM also rose, averaging 2.92% this week compared to last week’s 2.89%. The rate is still holding below last year’s 3.08%.
The 5-year Treasury-indexed adjustable-rate mortgage averaged 2.88% this week, up slightly from last week’s average of 2.87%. a year ago at this time, the 5-year ARM averaged 2.96%.
Mortgage rates continued their upward trend this week, but are still holding near three-year lows, according to new data from Freddie Mac.