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Mortgage rates recorded their largest year-over-year increase in four years, according to the Primary Mortgage Market Survey (PMMS) from Freddie Mac.
The 30-year fixed-rate mortgage (FRM) averaged 4.60 percent for the week ending Sept. 13, their highest level since Aug. 2. The rate was up from last week when it averaged 4.54 percent. A year ago at this time, the 30-year FRM averaged 3.78 percent.
The 15-year FRM this week averaged 4.06 percent, up from last week when it averaged 3.99 percent. A year ago at this time, the 15-year FRM averaged 3.08 percent. And the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.93 percent, unchanged from last week. A year ago at this time, the five-year ARM averaged 3.13 percent.
“Mortgage rates are currently 0.82 percent higher than a year ago, which is the biggest year-over-year increase since May 2014,” said Sam Khater, Freddie Mac’s Chief Economist. “Looking ahead, annualized comparisons for mortgage applications may look weaker than they appear, but that’s primarily because of the large spread between mortgage rates now and last September, which was when they reached their low for the year. Overall, this spectacular stretch of solid job gains and low unemployment should help keep homebuyer interest elevated. However, mortgage rates will likely also move up, as the Federal Reserve considers short-term rate hikes this month and at future meetings.”
