Mortgage rates edged higher for the week ended June 12 following higher Treasury yields and the May jobs report, the latest Freddie Mac Primary Mortgage Market Survey found.
The 30-year, fixed rate mortgage averaged 4.20%, up from 4.14% last week and 3.98% a year ago.
In addition, the 15-yr, FRM hit 3.31%, increasing from 3.23% a week ago and 3.10% in 2013.
The 5-year Treasury indexed hybrid adjustable-rate mortgage rose from 2.93% last week to 3.05% this week. Last year, the 5-year ARM came in at 2.79%.
The 1-year Treasury-indexed ARM averaged 2.40% for the week, unchanged from a week prior, but down from 2.58% a year ago.
“Mortgage rates continued to climb for the second week in a row following the increase in 10-year Treasury yields. Also, the economy added 217,000 jobs in May, following a 282,000 surge in April and a 203,000 increase in March. Meanwhile, the unemployment rate in May held steady at 6.3%,” Frank Nothaft, vice president and chief economist with Freddie Mac, said.
Meanwhile, Bankrate posted similar results with the 30-yr, FRM increasing to 4.34% from 4.32% a week ago.
The 15-yr, FRM hit 3.43%, up from 3.41%, while the 5/1 ARM came in at 3.37%, an increase from 3.31%.
To put this into perspective, Bankrate said, “As 2013 came to a close, the average 30-year fixed mortgage rate was 4.69%. At that time, a $200,000 loan would have carried a monthly payment of $1,036.07.”
“After drifting lower for much of the first five months of 2014, the average rate is now 4.32%, and the monthly payment for the same size loan would be $994.45, a savings of nearly $42 per month for anyone that waited,” Bankrate added.