US mortgage rates rose for the fifth consecutive year since Announcement by the Fed On Wednesday.
Despite the Fed’s decision to keep rates low, the 30-year fixed-rate mortgage rose four basis points week after week to 3.09%. Freddie Mac’s chief economist Sam Khater said the uptrend could have been caused by various market conditions.
“As expected, mortgage rates continued to rise but are still around 3%, which keeps interested buyers in the market,” said Khater. “However, residential construction has declined for two consecutive months. With very low inventory levels, competition among potential homebuyers is a challenging reality, especially for first-time buyers. “
The average rate on a 15 year fixed loan also rose this week from 2.38% the week before to 2.40%. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) rose two basis points week over week to 2.79%.