Average U.S. mortgage interest rates increased for the fifth consecutive week and reached the highest levels in more than seven years, according to Freddie Mac's weekly Primary Mortgage Market Survey for the week ending September 27, 2018.
The 30-year, fixed-rate mortgage loan averaged 4.72 percent, with an average 0.5 point, up from 4.65 percent the previous week. The last time interest rates were as high was the week ending April 28, 2011 (4.78 percent). The 30-year note averaged 3.83 percent during the same week last year.
“The robust economy, rising Treasury yields and the anticipation of more short-term rate hikes caused mortgage rates to move up,” Sam Khater, Freddie Mac’s chief economist, said. “Even with these higher borrowing costs, it’s encouraging to see [those] prospective buyers appear to be having a little more success."
“Consumer confidence is at an 18-year high, and job gains are holding steady," Khater added. "These two factors should keep demand up in coming months, but at the same time, home shoppers will likely deal with even higher mortgage rates.”
The 15-year, fixed-rate mortgage loan averaged 4.16 percent, with an average 0.5 point, an increase from 4.11 percent the previous week and 3.13 percent during the same timeframe last year.
The five-year, adjustable-rate mortgage (ARM) averaged 3.97 percent, with an average 0.3 point, compared to 3.92 percent the previous week. A year ago, the five-year ARM averaged 3.20 percent.