Home prices aren’t the only thing that’s going up, up, up. Freddie Mac’s latest Primary Mortgage Market Survey found average mortgage rates reaching levels that have not been seen in four years.
The 30-year fixed-rate mortgage (FRM) averaged 4.58 percent for the week ending April 26, up from last week when it averaged 4.47 percent. A year ago, the 30-year FRM averaged 4.03 percent. The 15-year FRM this week averaged 4.02 percent, up from last week when it averaged 3.94 percent. A year ago, the 15-year FRM averaged 3.27 percent. And the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.74 percent this week, up from last week when it averaged 3.67 percent. A year ago, the 5-year ARM averaged 3.12 percent.
“Mortgage rates are now at their highest level since the week of August 22, 2013,” said Freddie Mac Chief Economist Sam Khater. “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. 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.”