Mortgage Rates at the Highest Level in 4 Years
The end of April marked a rise in mortgage rates we haven’t experienced in over four years, continuing their upward march that began in 2018. Freddie Mac announced these Primary Mortgage Market Survey figures for fixed-rate and adjustable rate mortgage loans:
- The 30-year fixed-rate was at an average of 4.58%. Points are averaging 0.5, up from a 4.47% average. The 4.58% average is an increase from the 4.03% during the same time in 2017.
- The 15-year fixed-rate was at an average of 4.02%, with points at 0.4 average, up from a 3.94% average. The 4.03% average is an increase from 3.27% during the same period in 2017.
- The average rate for the 5-year Treasury-indexed hybrid adjustable-rate was at an average of 3.74%, with points at a 0.3 average, up from a 3.67% average in the previous period. The average rose from 3.12% during the same time in 2017.
According to Sam Khater, Freddie Mac’s Chief Economist, the uptick in mortgage rates are at their high since August 2013. This is due to higher prices for commodities, more issuances of Treasury bonds and a better economy.
He also stated solid home buying credit remained solid even though borrowing costs were increasing. Home purchases are up 11% from this time a year ago, according to The Mortgage Bankers Association applications survey.