According to Freddie Mac's latest Primary Mortgage Market Survey, U.S. mortgage rates in early August 2018 jumped to their fourth highest level of the year.
Sam Khater, Freddie Mac's chief economist, says the 30-year fixed-rate mortgage drifted up for the second consecutive week to 4.60 percent. "The higher rate environment, coupled with the ongoing lack of affordable inventory, has led to a drag on existing-home sales in the last few months," he said. "Yesterday, the Federal Reserve passed on raising short-term rates, but with the embers of a strong economy potentially stoking higher inflation, borrowing costs will likely modestly rise in coming months."
Added Khater, "Even with home price growth easing slightly in some markets, mortgage rates hovering near a seven-year high will certainly create affordability challenges for some prospective buyers looking to close."
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 4.60 percent with an average 0.4 point for the week ending August 2, 2018, up from last week when it averaged 4.54 percent. A year ago at this time, the 30-year FRM averaged 3.93 percent.
15-year FRM this week averaged 4.08 percent with an average 0.4 point, up from last week when it averaged 4.02 percent. A year ago at this time, the 15-year FRM averaged 3.18 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.93 percent with an average 0.2 point, up from last week when it with an average 3.87 percent. A year ago at this time, the 5-year ARM averaged 3.15 percent.
U.S. mortgage applications for new home purchases increased 8.2 percent compared to September 2017. Compared to August 2018, applications decreased by 9 percent. This change does not include any adjustment for typical seasonal patterns.
According to the Mortgage Bankers Association's most recent Weekly Mortgage Applications Survey for the week ending September 28, 2018, U.S. mortgage applications remained unchanged from one week earlier.
According to the recently released CBRE U.S. Seniors Housing & Care Investor Survey, the appetite for senior housing acquisitions in the U.S. remains strong, with nearly two-thirds of investors planning to increase the size of their portfolios over the next 12 months.