August 5, 2021

MP Now News

Mortgage News

US mortgage rates hit highest level in nine months

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%.