According to Freddie Mac's latest Primary Mortgage Market Survey, U.S. mortgage rates moved up over the past week to their highest level since May 5, 2011.
Sam Khater, Freddie Mac's chief economist, says the 30-year fixed-rate mortgage rose six basis points to 4.66 percent. "Mortgage rates so far in 2018 have had the most sustained increase to start the year in over 40 years," he said. "Through May, rates have risen in 15 out of the first 21 weeks (71 percent), which is the highest share since Freddie Mac began tracking this data for a full year in 1972."
Added Khater, "At a time when housing inventory remains extremely low, it's worth watching whether these higher borrowing costs lead some would-be sellers to stay put in their current home. Inventory shortages would likely worsen if more homeowners decide not to sell out of reluctance of having a new mortgage with a higher rate."
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 4.66 percent with an average 0.4 point for the week ending May 24, 2018, up from last week when it averaged 4.61 percent. A year ago at this time, the 30-year FRM averaged 3.95 percent.
15-year FRM this week averaged 4.15 percent with an average 0.4 point, up from last week when it averaged 4.08 percent. A year ago at this time, the 15-year FRM averaged 3.19 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.87 percent this week with an average 0.3 point, up from last week when it averaged 3.82 percent. A year ago at this time, the 5-year ARM averaged 3.07 percent.
The National Association of Realtors is reporting this week that single female buyers continue to be a powerful force in the U.S. housing market, while low inventory, rising interest rates and increasing home prices remain, holding back first-time buyers despite notable interest in buying a home.