Mortgage rates hit seven-year high, close in on 5%

mortgage rate


This week’s Primary Mortgage Market Survey from Freddie Mac found that mortgage rates rose significantly across the board.

“The economy continued to show resilience as strong business activity and growth in employment drove the 30-year fixed mortgage rate to a seven year high of 4.94 percent – up 11 basis points from last week,” says Sam Khater, Freddie Mac’s chief economist.

Khater says the rates are having an influence on home sales that may extend beyond the traditional high-cost areas of the U.S.

They’ve “led to a slowdown in national home price growth, but the price deceleration has been primarily concentrated in affluent coastal markets such as California and the state of Washington,” says Khater. “The more affordable interior markets – which have not yet experienced a slowdown home price growth – may see price growth start to moderate and affordability squeezed if mortgage rates continue to march higher.”

This week’s rates

  • The 30-year fixed-rate mortgage (FRM) averaged 4.94 percent with an average 0.5 point, up from last week when it averaged 4.83 percent. A year ago, the 30-year FRM averaged 3.90 percent.
  • The 15-year FRM this week averaged 4.33 percent with an average 0.5 point, up from 4.23 percent. A year ago, the 15-year FRM averaged 3.24 percent.
  • The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 4.14 percent with an average 0.3 point, up from 4.04 percent. A year ago, the 5-year ARM averaged 3.22 percent.

News Source:  Florida Realtors.

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