Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Surveyâ, showing that mortgage rates rose for the fourth consecutive week.
Sam Khater, Freddie Mac’s chief economist, said the 30-year fixed-rate mortgage increased once again to its highest level since May. “Mortgage rates are drifting upward again and represent continued affordability challenges for prospective buyers – especially first-time buyers,” he said. “Borrowing costs are moving right now for three main reasons: the very strong economy, higher U.S. government debt issuances and global trade tensions.”
Added Khater, “Amidst this four-week climb in mortgage rates, the welcoming news is that purchase applications have risen on an annual basis for five consecutive weeks. However, given the widespread damage caused by Hurricane Florence in the Carolinas, the next few months of housing activity will likely be somewhat volatile.”
· 30-year fixed-rate mortgage (FRM) averaged 4.65% with an average 0.5 point for the week ending September 20, 2018, up from last week when it averaged 4.60%. A year ago at this time, the 30-year FRM averaged 3.83%.
· 15-year FRM this week averaged 4.11% with an average 0.5 point, up from last week when it averaged 4.06%. A year ago at this time, the 15-year FRM averaged 3.13%.
· 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.92% with an average 0.4 point, up from last week when it averaged 3.93%. A year ago at this time, the 5-year ARM averaged 3.17%.
