Mortgage rates jumped 6 basis points over the past week, which led to the largest year-over-year gain in over four years, according to Freddie Mac.
|30-Year FRM||15-Year FRM||5/1-Year ARM|
|Fees & Points||0.5||0.5||0.3|
The 30-year fixed-rate mortgage averaged 4.6% for the week ending Sept. 13, up from last week when it averaged 4.54%. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.78%.
“Mortgage rates are currently 0.82% higher than a year ago, which is the biggest year-over-year increase since May 2014. 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,” Sam Khater, Freddie Mac’s chief economist, said in a press release.
“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,” said Khater.
The 15-year fixed-rate mortgage this week averaged 4.06%, up from last week when it averaged 3.99%. A year ago at this time, the 15-year fixed-rate mortgage averaged 3.08%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.93% with an average 0.3 point (unchanged from last week). A year ago at this time, the five-year adjustable-rate mortgage averaged 3.13%.
“This week markets will likely focus on inflation data due tomorrow, as well as a policy announcement by the European Central Bank, which is expected to confirm plans to tighten monetary policy in the Eurozone,” Aaron Terrazas, Zillow’s senior economist, said when that company released its own rate tracker on Sept. 12.