Mortgage interest rates are now as high as they've been in seven years.
Despite falling in previous weeks, interest rates reversed course, and rose to the highest level since 2011, according to Freddie Mac’s latest Primary Mortgage Market survey.
“While this year’s higher mortgage rates have not caused much of a ripple in the strong demand levels for buying a home seen in most markets, inflationary pressures and the prospect of rates approaching 5 percent could begin to hit the psyche of some prospective buyers,” Freddie Mac Chief Economist Sam Khater said.
(Source: Freddie Mac)
The 30-year fixed-rate mortgage increased to 4.61% for the week ending May 17, 2018, up from 4.55% last week and 4.02% last year.
The 15-year FRM increased to an average 4.08% this week, up from 4.01% last week and 3.27% last year.
The five-year Treasury-indexed hybrid adjustable-rate mortgage increased to an average 3.82% this week, up from 3.77% last week and 3.13% last year.
“Healthy consumer spending and higher commodity prices spooked the bond markets and led to higher mortgage rates over the past week,” Khater said. “Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season.”