Mortgage rates climbed higher amid better-than-expected reports on private job growth and new home sales, according to the latest Freddie Mac Primary Mortgage Market Survey.
"Fixed mortgage rates increased this week following stronger-than-expected economic data releases," said Frank Nothaft, vice president and chief economist for Freddie Mac.
"Private companies added 215,000 new jobs in November according to the ADP employment report, well above the consensus. In addition, revisions added 54,000 jobs in the prior month," he added.
The 30-year, fixed-rate mortgage continued to rise, hitting 4.46%, up from 4.29% last week, and significantly higher than 3.34% a year ago this time.
Also escalating, the 15-year, FRM rose to 3.47%, compared to 3.30% last week and 2.67% in 2012.
The 5-year Treasury-indexed adjustable-rate mortgage averaged 2.99%, a slight increase from 2.94% a week prior and drastically higher than 2.69% a year ago.
Meanwhile, the one-year Treasury-indexed adjustable-rate mortgage was the only rate to drop, sinking to 2.59% from 2.60% last week, but marginally up from 2.55% a year ago.
Nothaft also noted that the recent new home sales report had a significant impact on rates.
"New home sales rose 25% in the month of October to a seasonally adjusted 444,000 annual pace, though this followed a weaker-than-expected September report and downward revisions over the summer months," Nothaft said.
"You will see the market improve as time goes by, but in the short run, we are anticipating a very rough first quarter for mortgage companies due to regular seasonal issues and high rates," said Brian Koss, executive vice president of Mortgage Network, in an interview with HousingWire.
Following suite, Bankrate reported that mortgage rates also increased.
The 30-year, fixed rose to 4.55%, up from 4.44%, while the 15-year fixed elevated to 3.62%, from 3.47% a week prior.
The 5/1 ARM also edged higher to 3.33%, compared to 3.29% last week.
To put into perspective how high rates have risen, as recently as May 1st, the average 30-year fixed mortgage rate sat at 3.52%, Bankrate said.
"At that time, a $200,000 loan would have carried a monthly payment of $900.32. With the average rate currently at 4.55%, the monthly payment for the same size loan would be $1,019.32, a difference of approximately $119 per month for anyone that waited too long," Bankrate pointed out.