Mortgage Rates Climb to Highest Level in Over Four Years

Mortgage Rates Climb to Highest Level in Over Four Years

Mortgage Rates Climb to Highest Level in Over Four Years

The FINANCIAL -- Freddie Mac on April 26 released the results of its Primary Mortgage Market Survey (PMMS), showing average mortgage rates continuing the upward trajectory seen in most of early 2018.

Sam Khater, Freddie Mac chief economist, says mortgage rates increased for the third consecutive week, climbing 11 basis points to 4.58 percent. “Mortgage rates are now at their highest level since the week of August 22, 2013,” he said. “Higher Treasury yields, driven by rising commodity prices, more Treasury issuances and the steady stream of solid economic news, are behind the uptick in rates over the past week.”

Added Khater, “Despite the increase in borrowing costs, demand for home purchase credit remains solid. The Mortgage Bankers Association reported in their latest mortgage applications survey that activity was up 11 percent from a year ago.”

News Facts

30-year fixed-rate mortgage (FRM) averaged 4.58 percent with an average 0.5 point for the week ending April 26, 2018, up from last week when it averaged 4.47 percent. A year ago at this time, the 30-year FRM averaged 4.03 percent.

15-year FRM this week averaged 4.02 percent with an average 0.4 point, up from last week when it averaged 3.94 percent. A year ago at this time, the 15-year FRM averaged 3.27 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.74 percent this week with an average 0.3 point, up from last week when it averaged 3.67 percent. A year ago at this time, the 5-year ARM averaged 3.12 percent.

Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following link for the Definitions. Borrowers may still pay closing costs which are not included in the survey.