Average fixed-rate mortgages rose for the second consecutive week and, for the first time since last summer, the 30-year fixed-rate mortgage shot above 4 percent, Freddie Mac reports in its weekly mortgage market survey.
“This is the highest weekly average for the 30-year fixed-rate mortgage since May of 2017,” says Len Kiefer, Freddie Mac’s deputy chief economist. “Some may be wondering if this is the last time we’ll see a three handle on the 30-year mortgage rate. Never say never, but inflation is firming, the Federal Reserve’s Beige Book indicates broad-based economic growth, and labor markets are tightening. This means upward pressure on long-term rates, like the 30-year fixed-rate mortgage, is building.”
Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 18:
- 30-year fixed-rate mortgages: averaged 4.04 percent, with an average 0.6 point, up from last week’s 3.99 percent average. Last year at this time, 30-year rates averaged 4.09 percent.
- 15-year fixed-rate mortgages: averaged 3.49 percent, with an average 0.5 point, increasing from last week’s 3.44 percent average. A year ago, 15-year rates averaged 3.34 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 3.46 percent, with an average 0.3 point, unchanged from last week’s average. A year ago, 5-year ARMs averaged 3.21 percent.
Source: Freddie Mac