Based on Freddie Mac's latest Primary Mortgage Market Survey, U.S. mortgage rates increased marginally in the first week of September 2018 over the past week.
Sam Khater, Freddie Mac's chief economist, says the 30-year fixed-rate mortgage inched higher for the second straight week. "Borrowing costs may be slowly on the rise again in coming weeks, as investors remain optimistic about the underlying strength of the economy," he said. "It's important to note that rates are now up three-quarters of a percentage point from last year and home prices - albeit at a slower pace - are still outrunning rising inflation and incomes."
Added Khater, "This weakening in affordability is hindering many interested buyers this fall, even as the robust economy brings them into the market. The good news is that purchase mortgage applications have recently rebounded to above year ago levels."
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 4.54 percent with an average 0.5 point for the week ending September 6, 2018, up from last week when it averaged 4.52 percent. A year ago at this time, the 30-year FRM averaged 3.78 percent.
15-year FRM this week averaged 3.99 percent with an average 0.4 point, up from last week when it averaged 3.97 percent. A year ago at this time, the 15-year FRM averaged 3.08 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.93 percent with an average 0.3 point, up from last week when it with an average 3.85 percent. A year ago at this time, the 5-year ARM averaged 3.15 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.