Mortgage rates inched forward this week, reaching its highest level since June 2017, according to Freddie Mac’s latest Primary Mortgage Market survey.
“The next few months will be key for gauging the health of the housing market,” Freddie Mac Chief Economist Sam Khater said. “Existing sales appear to have peaked, sales of newly built homes are slowing and [historically high] unsold inventory is rising for the first time in three years.”
“Meanwhile, affordability pressures are increasingly a concern in many markets, as the combination of continuous price gains and higher mortgage rates appear to be giving more prospective buyers a pause,” Khater added. “This is why new and existing-home sales are not breaking out this summer despite the healthy economy and labor market.”
(Click chart below to expand)
(Source: Freddie Mac)
According to the report, the 30-year fixed-rate mortgage averaged 4.54% for the week ending July 26, 2018, up from 4.52% last week, and up from 3.92% last year.
The 15-year FRM inched forward to an average 4.2% this week, up from last week when it averaged 4%. This time last year, the 15-year FRM was 3.20%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage remained at 3.87%, which is still up from this time last year when it was 3.18%.