Mortgage Rates Up Again

Mortgage rates increased for the fourth consecutive week, according to new data from Freddie Mac.

 

The 30-year fixed-rate mortgage (FRM) averaged 4.65 percent for the week ending Sept. 20, up from last week when it averaged 4.60 percent. The 15-year FRM this week averaged 4.11 percent, up from last week when it averaged 4.06 percent. And the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.92 percent, up from last week when it averaged 3.93 percent.

 

“Mortgage rates are drifting upward again and represent continued affordability challenges for prospective buyers, especially first-time buyers,” said Sam Khater, Freddie Mac’s Chief Economist. “Borrowing costs are moving right now for three main reasons: the very strong economy, higher U.S. government debt issuances and global trade tensions. 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.”

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