The average rate on a 30-year fixed mortgage climbed to its highest level in seven years.
According to the latest Freddie Mac Primary Mortgage Market Survey, 30-year rates hit an average of 4.61 percent for the week ending May 17, 2018. That was up from 4.55 percent the week before and the highest mark since May 19, 2011.
Fifteen-year rates jumped from 4.01 percent to 4.08 percent, while the average for a 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) increased from 3.77 percent to 3.82 percent.
A year ago at this time, 30-year rates averaged 4.02 percent, 15-year rates averaged 3.27 percent, and 5-year ARMs averaged 3.13 percent.
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“Healthy consumer spending and higher commodity prices spooked the bond markets and led to higher mortgage rates over the past week,” said Sam Khater, Freddie Mac’s chief economist.
“Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season.
“While this year’s higher mortgage rates have not caused much of a ripple in the strong demand levels for buying a home seen in most markets, inflationary pressures and the prospect of rates approaching 5 percent could begin to hit the psyche of some prospective buyers.”