After a strong jobs report for July that beat economists’ expectations, mortgage rates are climbing up yet again, after a drastic drop last week back to near all-time lows.
“A surprisingly strong July jobs report showed 255,000 jobs added and 0.3 percent wage growth from last month, exceeding many experts’ expectations,” said Freddie Mac Chief Economist Sean Becketti.
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(Source: Freddie Mac)
The 30-year fixed-rate mortgage increased to 3.45% for the week ending in Aug. 11, 2016. This is up two basis points from last week’s 3.43%, and up from last year’s 3.94%.
This week the 15-year FRM increased to 2.76%, up from last week’s 2.74% and from last year’s 3.17%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage rose to 2.74% this week, up from last week’s 2.73% and from last year’s 2.93%.
Becketti explained that the unexpectedly high jobs report was responsible for the increase in mortgage interest rates.
“In response, the 10-year Treasury yield rose to its highest level since June and the 30-year fixed-rate mortgage increased two basis points to 3.45%,” Becketti said.