Mortgage rates hit a seven-year high as the average for a 30-year fixed mortgage approaches the 5-percent mark.
Rates jumped significantly across the board for the week in the latest Freddie Mac Primary Mortgage Market Survey. Both 30-year fixed and 5-year adjustable rate mortgages (ARM) increased 11 basis points for the week, while the average 15-year fixed rate climbed 10 basis points.
For the week ending November 8, a 30-year fixed-rate mortgage carried an average rate of 4.94 percent. That was up from 4.83 percent the week before and 3.90 percent a year ago.
Since bottoming out at 4.51 percent in late August, the average 30-year rate has been on a steady climb.
For perspective, if you financed a $300,000 mortgage at 4.51 percent, your monthly principal and interest payment would be $1,522. This week’s average rate would push that monthly payment to $1,599.
“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,” said Freddie Mac Chief Economist Sam Khater. “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.”
The average rate on a 15-year fixed mortgage was 4.33 percent during the latest Freddie Mac survey. That was up from 4.23 percent the week before. A year ago at this time, the average 15-year rate was 3.24 percent, more than a full percentage lower than today.
The average rate on a 5-year ARM was 4.14 percent, which is what it was two weeks ago before tumbling to 4.04 percent. Last year’s 5-year ARM averaged 3.22 percent.
Mortgage rates moved in tandem with 10-year Treasury yields. Bond yields are on the rise as investors anticipate more government debt to fund a growing deficit.