The 30-year fixed mortgage rate has reached its highest level since April 2014, according to new data from Freddie Mac
The 30-year fixed-rate mortgage (FRM) averaged 4.38 percent for the week ending Feb. 15, up from last week when it averaged 4.32 percent. The 15-year FRM this week averaged 3.84 percent, up from last week when it averaged 3.77 percent. And the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.63 percent, up from last week when it averaged 3.57.
“Wednesday's Consumer Price Index report showed higher-than-expected inflation; headline consumer price inflation was 2.1 percent year-over-year in January two tenths of a percentage point higher than the consensus forecast,” Len Kiefer, Freddie Mac’s deputy chief economist.
“Inflation measures were broad-based, cementing expectations that the Federal Reserve will go forward with monetary tightening later this year. Following this news, the 10-year Treasury reached its highest level since January 2014, climbing above 2.90 percent. Mortgage rates have also surged. After jumping 10 basis points last week, the 30-year fixed-rate mortgage rose 6 basis points to 4.38 percent, its highest level since April 2014.”