Fixed-rate mortgages increased again this week, the third consecutive week to see a rise.
“Rates keep climbing,” says Len Kiefer, Freddie Mac’s chief economist. “The 10-year Treasury yield reached its highest point since 2014 reflecting expectations of broad-based economic growth. Mortgage rates, in turn, followed the surge in Treasury yields. The 30-year fixed rate mortgage jumped 11 basis points to 4.15 percent, its highest level since March of last year.”
Home buyer affordability will be a challenge, with mortgage rates moving higher and robust house price gains across the country, Kiefer adds.
Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 25:
- 30-year fixed-rate mortgages: averaged 4.15 percent, with an average 0.5 point, increasing from last week’s 4.04 percent average. Last year at this time, 30-year rates averaged 4.19 percent.
- 15-year fixed-rate mortgages: averaged 3.62 percent, with an average 0.5 point, increasing from last week’s 3.49 percent average. A year ago, 15-year rates averaged 3.40 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 3.52 percent, with an average 0.4 point, increasing over last week’s 3.46 percent average. A year ago, 5-year ARMs averaged 3.20 percent.