Mortgage rates were on the rise again this week, reaching their highest level since 2011. The 30-year fixed-rate mortgage rose six basis points last week to an average of 4.66 percent.
“Mortgage rates so far in 2018 have had the most sustained increase to start the year in over 40 years,” says Sam Khater, Freddie Mac’s chief economist. “Through May, rates have risen in 15 out of the first 21 weeks (71 percent), which is the highest share since Freddie Mac began tracking this data for a full year in 1972.”
Khater adds that the higher rates likely are having an impact on the housing market. “At a time when housing inventory remains extremely low, it’s worth watching whether these high borrowing costs lead some would-be sellers to stay put in their current home,” he says. “Inventory shortages would likely worsen if more homeowners decided not to sell out of reluctance of having a new mortgage with a higher rate.”
Freddie Mac reports the following national averages with mortgage rates for the week ending May 24:
- 30-year fixed-rate mortgages: averaged 4.66 percent, with an average 0.4 point, rising from last week’s 4.61 percent average. A year ago, 30-year rates averaged 3.95 percent.
- 15-year fixed-rate mortgages: averaged 4.15 percent, with an average 0.4 point, rising from last week’s 4.08 percent average. A year ago, 15-year rates averaged 3.19 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 3.87 percent, with an average 0.3 point, climbing from last week’s 3.82 percent average. A year ago, 5-year ARMs averaged 3.07 percent.