According to Freddie Mac's latest Primary Mortgage Market Survey, U.S. mortgage rates moved up slightly over the past week to their highest level since late June 2018.
"The next few months will be key for gauging the health of the housing market," said Freddie Mac Chief Economist Sam Khater. "Existing sales appear to have peaked, sales of newly built homes are slowing and unsold inventory is rising for the first time in three years."
Added Khater, "Meanwhile, affordability pressures are increasingly a concern in many markets, as the combination of continuous price gains and higher mortgage rates appear to be giving more prospective buyers a pause. This is why new and existing-home sales are not breaking out this summer despite the healthy economy and labor market."
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 4.54 percent with an average 0.5 point for the week ending July 26, 2018, up from last week when it averaged 4.52 percent. A year ago at this time, the 30-year FRM averaged 3.92 percent.
15-year FRM this week averaged 4.02 percent with an average 0.4 point, up from last week when it averaged 4.00 percent. A year ago at this time, the 15-year FRM averaged 3.20 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.87 percent this week (unchanged from last week) with an average 0.4 point. A year ago at this time, the 5-year ARM averaged 3.18 percent.
According to new U.S. housing market research by Zillow, the combination of rising home prices and interest rates creates a doubly challenging environment for would-be home buyers, making monthly mortgage payments on even modestly priced homes more of a financial burden.
According to Freddie Mac's latest Primary Mortgage Market Survey for late August 2018, U.S. mortgage rates were marginally higher over the past week. Mortgage rates are showing a steadiness last seen in the fall of 2016.
According to the National Association of Realtors, existing-home sales subsided for the fourth straight month in July 2018 to their slowest pace in over two years. The West was the only major region with an increase in sales last month.