The average 30-year, fixed mortgage rate is 4.22 percent—hitting more than a one-quarter percentage point increase since the start of the year, according to Freddie Mac’s recently released Primary Mortgage Market Survey® (PMMS®). The average 30-year, fixed rate was 4.15 percent last week.
It is likely mortgage rates will rise in the year ahead, says Len Kiefer, deputy chief economist at Freddie Mac.
“The Federal Reserve did not hike rates this week, but the market views future hikes as a near certainty,” Kiefer says. “The expectation of future Fed rate hikes and increased borrowing by the U.S. Treasury is putting upward pressure on interest rates. The 30-year fixed rate mortgage is up over a quarter of a percentage point (27 basis points) from the first week of the year. Thirty-year fixed mortgage rates have increased for four consecutive weeks and are now slightly above where they were last year at this time.”
The average 15-year, fixed mortgage rate is 3.68 percent, up from 3.62 percent last week. The average five-year, Treasury-indexed hybrid adjustable mortgage rate is 3.53 percent, up from 3.52 percent last week.
Source: Freddie Mac
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Mortgage Rates Up One-Quarter Percentage Point Since Start of Year