Average mortgage rates bounce up again
Mortgage rates inched higher for the second straight week and further increases are likely in the near term, according to Freddie Mac.
|30-Year FRM||15-Year FRM||5/1-Year ARM|
|Fees & Points||0.5||0.4||0.3|
The 30-year fixed-rate mortgage averaged 4.54% for the week ending Sept. 6, up from last week when it averaged 4.52%. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.78%.
"Borrowing costs may be slowly on the rise again in coming weeks, as investors remain optimistic about the underlying strength of the economy. It's important to note that rates are now up three-quarters of a percentage point from last year and home prices — albeit at a slower pace — are still outrunning rising inflation and incomes," Sam Khater, Freddie Mac's chief economist, said in a press release.
"This weakening in affordability is hindering many interested buyers this fall, even as the robust economy brings them into the market. The good news is that purchase mortgage applications have recently rebounded to above year ago levels."
The 15-year fixed-rate mortgage this week averaged 3.99%, up from last week when it averaged 3.97%. A year ago at this time, the 15-year fixed-rate mortgage averaged 3.08%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.93% with an average 0.3 point, up from last week when it with an average 3.85%. A year ago at this time, the five-year adjustable-rate mortgage averaged 3.15%.
"Rates remain below their springtime highs, but are approaching the upper end of the relatively narrow range where they spent most of the summer," Aaron Terrazas, Zillow's senior economist, said when that company released its own rate tracker on Sept. 5. "Markets will likely focus on Friday's monthly jobs report — strong employment gains or wage growth could put additional upward pressure on rates — as well as several high profile Fed speeches this week."