Freddie Survey Finds Rates at Highest Point in Two Years

The average for the 30-year fixed-rate mortgage jumped 53 basis points this week to its highest level in almost two years, according to the latest Freddie Mac Primary Mortgage Market Survey.

Freddie Mac said the rate, now at 4.46%, is at the highest it has been since the week of July 28, 2011. This represents the largest weekly increase for the 30-year fixed since the week ended April 17, 1987. One week ago, the rate was 3.93%.

Earlier this week, Zillow found rates had risen 50 bps, while HSH.com’s tracker had them up 34%. The Mortgage Bankers Association, whose reporting period covered the week of June 21, had 29 basis point rise for the conforming (under $417,500) 30-year FRM.

According to the Freddie Mac survey, the average for the 15-year FRM increased 46 bps to 3.50%, the average for the five-year hybrid adjustable-rate mortgage gained 29 bps to 3.08%, while the one-year ARM increased by just 9 bps to 2.66%.

Freddie Mac chief economist Frank Nothaft said, "Higher mortgage rates may dampen some housing market activity but the effect will be muted by the high level of buyer affordability, and home sales should remain strong. For instance, existing home sales in May rose to its strongest pace since November 2009 and new home sales were the most seen since July 2008. In addition, the 12-month growth in the S&P/Case-Shiller 20-city home price index for April of 12.1% was the largest since April 2006."