The 30-year fixed-rate mortgage (FRM) averaged 4.60 percent with an average 0.4 point for the week ending Aug. 2, 2018, up from last week when it averaged 4.54 percent. A year ago at this time, the 30-year FRM averaged 3.93 percent. The 15-year FRM this week averaged 4.08 percent with an average 0.4 point, up from last week when it averaged 4.02 percent. A year ago at this time, the 15-year FRM averaged 3.18 percent. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.93 percent with an average 0.2 point, up from last week when it with an average 3.87 percent. A year ago at this time, the five-year ARM averaged 3.15 percent.
“The higher rate environment, coupled with the ongoing lack of affordable inventory, has led to a drag on existing-home sales in the last few months,” said Sam Khater, Freddie Mac’s Chief Economist. “Yesterday, the Federal Reserve passed on raising short-term rates, but with the embers of a strong economy potentially stoking higher inflation, borrowing costs will likely modestly rise in coming months. Even with home price growth easing slightly in some markets, mortgage rates hovering near a seven-year high will certainly create affordability challenges for some prospective buyers looking to close.”