Rates hit highest levels since May
Average mortgage rates increased for the second consecutive week during the week ending Jan. 18, with the average rate for the 30-year fixed-rate mortgage rising to its highest level since May, according to the Primary Mortgage Market Survey released by Freddie Mac.
Rates for the 30-year fixed-rate mortgage averaged 4.04%, with an average 0.6 point. The average is an increase from the 3.99% average in the prior period but is down from the 4.09% average in the same week in 2017.
The 15-year fixed-rate mortgage recorded an average rate of 3.49%, with an average 0.5 point, rising from the 3.44% average in the previous period. The average is also higher compared to the year-ago period, which recorded a 3.34% average rate.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.46% with an average 0.3 point, remaining steady from the prior survey. A year ago at this time, the 5-year ARM averaged 3.21%.
"The US weekly average for the 30-year fixed mortgage rate rose above 4% for the first time since last summer to 4.04% in this week's survey,” Freddie Mac Deputy Chief Economist Len Kiefer said. “This is the highest weekly average for the 30-year fixed rate mortgage since May of 2017.
"Some may be wondering if this is the last time we'll see a three handle on the 30-year mortgage rate,” he said. “Never say never, but inflation is firming, the Federal Reserve's Beige Book indicates broad-based economic growth, and labor markets are tightening. This means upward pressure on long-term rates, like the 30-year fixed-rate mortgage, is building."
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Rates for the 30-year fixed-rate mortgage averaged 4.04%, with an average 0.6 point. The average is an increase from the 3.99% average in the prior period but is down from the 4.09% average in the same week in 2017.
The 15-year fixed-rate mortgage recorded an average rate of 3.49%, with an average 0.5 point, rising from the 3.44% average in the previous period. The average is also higher compared to the year-ago period, which recorded a 3.34% average rate.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.46% with an average 0.3 point, remaining steady from the prior survey. A year ago at this time, the 5-year ARM averaged 3.21%.
"The US weekly average for the 30-year fixed mortgage rate rose above 4% for the first time since last summer to 4.04% in this week's survey,” Freddie Mac Deputy Chief Economist Len Kiefer said. “This is the highest weekly average for the 30-year fixed rate mortgage since May of 2017.
"Some may be wondering if this is the last time we'll see a three handle on the 30-year mortgage rate,” he said. “Never say never, but inflation is firming, the Federal Reserve's Beige Book indicates broad-based economic growth, and labor markets are tightening. This means upward pressure on long-term rates, like the 30-year fixed-rate mortgage, is building."
Related stories:
Mortgage rates climb amidst bond market sell-off
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