According to Freddie Mac latest Primary Mortgage Market Survey for the first week of September 2018, U.S. mortgage rates jumped over the past week to a level not seen in over a month.
Sam Khater, Freddie Mac's chief economist, says the one-two punch of strong job and consumer credit growth drove mortgage rates up to their highest mark since August 2. "Mortgage rates are currently 0.82 percent higher than a year ago, which is the biggest year-over-year increase since May 2014," he said. "Looking ahead, annualized comparisons for mortgage applications may look weaker than they appear, but that's primarily because of the large spread between mortgage rates now and last September, which was when they reached their low for the year."
Added Khater, "Overall, this spectacular stretch of solid job gains and low unemployment should help keep homebuyer interest elevated. However, mortgage rates will likely also move up, as the Federal Reserve considers short-term rate hikes this month and at future meetings."
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 4.60 percent with an average 0.5 point for the week ending September 13, 2018, up from last week when it averaged 4.54 percent. A year ago at this time, the 30-year FRM averaged 3.78 percent.
15-year FRM this week averaged 4.06 percent with an average 0.5 point, up from last week when it averaged 3.99 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 (unchanged from last week). A year ago at this time, the 5-year ARM averaged 3.13 percent.