The 30-year FRM has risen to 3.81%
Freddie Mac’s latest Primary Mortgage Market Survey showed that, after three straight weeks of holding steady, mortgage rates have inched up for the week ending July 18.
The rise in rates was driven by continued improvement in consumer spending and optimism around a forthcoming cut in short-term interest rates, according to Freddie Mac Chief Economist Sam Khater.
The 30-year fixed-rate mortgage (FRM) rose from 3.75% the week prior to 3.81% with an average 0.6 point last week. Last year, the 30-year FRM averaged 4.52% at this time.
The 15-year FRM, on the other hand, was 3.23% with an average 0.5 point. The FRM went up from the previous week when it averaged 3.75% but down from 4.52% a year ago.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) also inched up to 3.48% from 3.46% the week before. At this time in 2018, the five-year ARM was 3.87%.
“Despite this slight increase in rates, homebuyers are taking advantage of the multi-year low rates in droves, which is evident in the consistently higher refinance and purchase application volumes,” said Khater. “The improvement in housing demand should provide sufficient momentum for the housing market and economy during the rest of the year.”
