Mortgage rates were on the upswing for the week ending August 2, with averages rising to their fourth highest level of the year, according to the Primary Mortgage Market Survey released by Freddie Mac.
Rates for the 30-year fixed-rate mortgage drifted up for the second consecutive week to 4.6%, with an average 0.4 point, from the previous 4.54% average. The latest average also marked an increase from the year-ago level of 3.93%.
The 15-year fixed-rate mortgage averaged 4.08%, with an average 0.4 point, up from 4.02%. A year ago at this time, the mortgage averaged 3.18%.
Average rates for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) increased to 3.93%, with an average 0.2 point, from 3.87%. The 5-year ARM averaged 3.15% in the same period in 2017.
“The higher rate environment, coupled with the ongoing lack of affordable inventory, has led to a drag on existing-home sales in the last few months,” Freddie Mac Chief Economist Sam Khater said. “Yesterday, the Federal Reserve passed on raising short-term rates, but with the embers of a strong economy potentially stoking higher inflation, borrowing costs will likely modestly rise in coming months. Even with home price growth easing slightly in some markets, mortgage rates hovering near a seven-year high will certainly create affordability challenges for some prospective buyers looking to close.”
Rates rebound to highest level since late June
Mortgage rates stay mostly flat