The average rate on the 30-year fixed mortgage moved up to near highs for the year as new data indicate the economy is strengthening, according to Freddie Mac.
The 30-year FRM averaged 4.57% for the week ending Thursday (Sept. 5), up from 4.51% the previous week. A year ago, the 30-year FRM averaged 3.55%.
The 15-year FRM averaged 3.59% this week, up four basis points from a week ago. And the five-year Treasury-indexed hybrid ARM rate averaged 3.28%, up 1 basis point from last week.
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“Real GDP was revised upwards to 2.5% growth in the second quarter of this year. In addition, residential construction spending rose for a ninth consecutive month in July. Lastly, the manufacturing industry expanded by the fastest pace in August since June 2011."
Recent forecasts by the Mortgage Bankers Association and National Association of Realtors indicate the rate on the 30-year FRM will remain below 5% for the rest of this year.
MBA economists expect rates to average 4.5% in the third quarter and 4.7% in the fourth quarter. NAR economists see the 30-year FRM rate averaging 4.6% in 3Q and 4.8% in 4Q.
