Freddie Mac: Mortgage rates reverse course from last week’s low

Mortgage & Real Estate

This week, the average U.S. fixed rate for a 30-year
mortgage jumped to 3.69%. That’s 12 points above last week’s 3.57% but
still more than a percentage point lower than the 4.85% of the
year-earlier week, according to the Freddie Mac Primary
Mortgage Market Survey.

“Despite this week’s uptick in mortgage rates, the housing market remains on the upswing with improvement in construction and home sales,” said Sam Khater, Freddie Mac’s chief economist. “While there has been a material weakness in manufacturing and consistent trade uncertainty, other economic trends like employment and homebuilder sentiment are encouraging.”

The 15-year FRM averaged 3.15% this week, rising from last
week’s 3.05%. This time last year, the 15-year FRM came in at 4.26%.

The five-year Treasury-indexed hybrid adjustable-rate
mortgage averaged 3.35%, holding steady from last week’s rate. Unsurprisingly,
the percentage is still well below 2018’s rate of 4.10%.

The image below highlights this week’s changes: