According to Freddie Mac's latest Primary Mortgage Market Survey, the average fixed U.S. mortgage rate rose for the second consecutive week in January 2018.
Len Kiefer, Deputy Chief Economist says, "The U.S. weekly average for the 30-year fixed mortgage rate rose above 4 percent for the first time since last summer to 4.04 percent in this week's survey. This is the highest weekly average for the 30-year fixed rate mortgage since May of 2017.
"Some may be wondering if this is the last time we'll see a three handle on the 30-year mortgage rate. Never say never, but inflation is firming, the Federal Reserve's Beige Book indicates broad-based economic growth and labor markets are tightening. This means upward pressure on long-term rates, like the 30-year fixed-rate mortgage, is building."
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 4.04 percent with an average 0.6 point for the week ending January 18, 2018, up from last week when it averaged 3.99 percent. A year ago at this time, the 30-year FRM averaged 4.09 percent.
15-year FRM this week averaged 3.49 percent with an average 0.5 point, up from last week when it averaged 3.44 percent. A year ago at this time, the 15-year FRM averaged 3.34 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.46 percent this week with an average 0.3 point, unchanged from last week. A year ago at this time, the 5-year ARM averaged 3.21 percent.
According to the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending December 29, 2017, Mortgage applications decreased 2.8 percent from two weeks earlier. The results include adjustments to account for the Christmas holiday.
According to the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending December 1, 2017, U.S. mortgage applications increased 4.7 percent from one week earlier. The prior week's results included an adjustment for the Thanksgiving holiday.