The 30-year fixed-rate mortgage jumped to 3.73%
Mortgage rates saw significant increases last week, with the 30-year fixed-rate mortgage hitting its largest weekly uptick since October 2018.
Freddie Mac’s Primary Mortgage Market Survey showed that the 30-year FRM’s average rate of 3.73% was up from 3.56% the week before. Last year, the 30-year FRM averaged 4.65%.
“Despite the rise in mortgage rates, economic data improved this week – particularly housing activity, which gained momentum with a noticeable rise in purchase demand and new construction,” said Sam Khater, chief economist at Freddie Mac.
The 15-year FRM also rose to 3.21% from 3.09% the previous week. A year ago, the 15-year FRM was 4.11%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage climbed to 3.49% from the prior week’s average of 3.36% and last year’s 3.92%.
“Homebuyers flocked to lenders with purchase applications, which were up 15% from a year ago and residential construction permits increased 12% from a year ago to 1.4 million, the highest level in twelve years,” Khater said. “While there was initially a slow response to the overall lower mortgage rate environment this year, it is clear that the housing market is finally improving due to the strong labor market and low mortgage rates.”
