Mortgage rates held steady last week after rising for the first time in almost two months the week before.
According to the latest Freddie Mac Primary Mortgage Market Survey, rates for 15-year and 30-year fixed-rate mortgages remained unchanged from week to week, while the rate for 5-year adjustable rate mortgages (ARMs) rose only slightly.
The average rate on a 30-year fixed has been 3.83 percent the last two weeks. Last year, it was 3.42 percent.
The average rate on a 15-year fixed has been 3.13 percent the last two weeks. It was 2.72 percent at this time last year.
The 5-year Treasury-indexed hybrid ARM average 3.20 percent last week, up from 3.17 percent the week before. A year ago at this time, the 5-year ARM averaged 2.81 percent.
Mortgage rates still have not increased to the extent originally forecast at the beginning of the year. That has helped homebuyers who are dealing with escalating home prices due to a lack of available inventory.
The combination of moderate mortgage rates and higher prices for existing homes has also pushed greater demand for newly constructed homes. Sales for newly constructed homes increased 6.8 percent year-over-year in August, according to the Mortgage Bankers Association (MBA) Builder Application Survey (BAS), with the average loan size for new homes last month was $334,940.