Mortgage rates climb to 4-year high
Mortgage rates have continued their upward trajectory, with the 30-year fixed-rate averaging 4.58% in the week ended April 26, 2018, up from the 4.47% average in the prior week. One year ago, the 30-year fixed-rate mortgage averaged 4.03%, according to Freddie Mac’s Primary Mortgage Market Survey.
“Mortgage rates are now at their highest level since the week of August 22, 2013,” according to Sam Khater, Freddie Mac chief economist. “Higher Treasury yields, driven by rising commodity prices, more Treasury issuances and the steady stream of solid economic news, are behind the uptick in rates over the past week.”
Khater added, “Despite the increase in borrowing costs, demand for home purchase credit remains solid. The Mortgage Bankers Association reported in their latest mortgage applications survey that activity was up 11% from a year ago.”
The 15-year fixed-rate mortgage averaged 4.02% in the week ended April 26, 2018, up from last week's when it averaged 3.94%, and the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.74% this week up from last week when it averaged 3.67%.