Mortgage rates jump due to skyrocketing refinances

by Candyd Mendoza20 Mar 2020

Mortgage rates jumped again this week as lenders increased prices to help manage surging refinance demand.

But Freddie Mac Chief Economist Sam Khater said that the upward trend might be brief.

“This is expected to be a short-term phenomenon as lenders work through their backlog,” Khater said. “On the purchase front, daily loan purchase applications were rising as of mid-February but started to decline last Friday.”

The Freddie Mac Primary Mortgage Market Survey showed that the 30-year fixed-rate mortgage (FRM) rose to 3.65%, up from last week's average of 3.36% but down compared to last year's 4.28%.

The 15-year FRM and the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) also showed increases this week.

The 15-year fixed-rate mortgage spiked from 2.77% a week ago to 3.06%. A year ago at this time, the 15-year FRM averaged 3.71%. 

The 5-year ARM climbed to 3.11%, up from last week when it averaged 3.01%. A year ago at this time, the 5-year ARM averaged 3.84%.