Mortgage rates rose to their highest level in more than four years during the week ending April 26 as they continued the upward path seen in most of early 2018, according to the Primary Mortgage Market Survey released by Freddie Mac.
Rates for the 30-year fixed-rate mortgage averaged 4.58%, with an average 0.5 point, up from the previous 4.47% average. The latest average also marks an increase from the 4.03% average in the same period a year ago.
The 15-year fixed-rate mortgage averaged 4.02%, with an average 0.4 point, up from 3.94%. A year ago at this time, the mortgage averaged 3.27%.
The average rate for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.74%, with an average 0.3 point, an increase from the 3.67% average in the prior period. The average increased year-over-year from 3.12%.
“Mortgage rates are now at their highest level since the week of Aug. 22, 2013,” Freddie Mac Chief Economist Sam Khater said. “Higher Treasury yields, driven by rising commodity prices, more Treasury issuances, and the steady stream of solid economic news are behind the uptick in rates over the past week.”
“Despite the increase in borrowing costs, demand for home purchase credit remains solid. The Mortgage Bankers Association reported in their latest mortgage applications survey that activity was up 11% from a year ago,” he said.