Average U.S. mortgage interest rates increased the week ending August 2, 2018, for the second straight week, hovering around a seven-year high, according to Freddie Mac's weekly Primary Mortgage Market Survey.
“The higher rate environment, coupled with the ongoing lack of affordable inventory, has led to a drag on existing-home sales in the last few months,” Sam Khater, Freddie Mac’s chief economist, said. “Yesterday the Federal Reserve passed on raising short-term rates, but with the embers of a strong economy potentially stoking higher inflation, borrowing costs will likely modestly rise in coming months.”
The 15-year, fixed-rate mortgage averaged 4.08 percent, with an average 0.4 point, an increase from 4.02 percent from the previous week. The 15-year note average 3.18 percent during the same week in 2017.
“Even with home price growth easing slightly in some markets, mortgage rates hovering near a seven-year high will certainly create affordability challenges for some prospective buyers looking to close,” Khater added.
The five-year, adjustable-rate mortgage (ARM) loan increased from 3.87 percent to 3.93 percent, with an average 0.2 point. The five-year ARM averaged 3.15 percent last year.