Mortgage rates were on the rise this week, and as a result, home buyers faced higher borrowing costs. The 30-year fixed rate rose to its highest average in seven years, averaging 4.94 percent this week, Freddie Mac reports.
“The economy continued to show resilience as strong business activity and the growth in employment” drove mortgage rates higher, says Sam Khater, Freddie Mac’s chief economist. “Higher mortgage rates have led to a slowdown in national home price growth, but the price deceleration has been primarily concentrated in affluent coastal markets such as California and the state of Washington. The more affordable interior markets—which have not yet experienced a slowdown home price growth—may see price growth start to moderate and affordability squeezed if mortgage rates continue to march higher.”
Freddie Mac reports the following national averages for the week ending Nov. 8:
- 30-year fixed-rate mortgages: averaged 4.94 percent, with an average 0.5 point, increasing from last week’s 4.83 percent average. Last year at this time, 30-year rates averaged 3.90 percent.
- 15-year fixed-rate mortgages: averaged 4.33 percent, with an average 0.5 point, increasing from last week’s 4.23 percent average. A year ago, 15-year rates averaged 3.24 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 4.14 percent, with an average 0.3 point, increasing from last week’s 4.04 percent average. A year ago, 5-year ARMs averaged 3.22 percent.