Mortgage rates surged to their highest level in almost five years this week.
According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average jumped to 4.58 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 4.47 percent a week ago and 4.03 percent a year ago. The 30-year fixed rate hasn’t been this high since August 2013.
The 15-year fixed-rate average climbed to 4.02 percent with an average 0.4 point. It was 3.94 percent a week ago and 3.27 percent a year ago. The 15-year fixed rate hasn’t been above 4 percent in seven years.
The five-year adjustable rate average grew to 3.74 percent with an average 0.3 point. It was 3.67 percent a week ago and 3.12 percent a year ago.
After plateauing the past couple months, mortgage rates are once again headed higher. The market is reacting to strong economic reports and statements from Federal Reserve officials who appear supportive of raising interest rates, which is having an effect on long-term bond yields.
The yield on the 10-year Treasury crossed the 3 percent threshold for the first time in four years this week, closing at 3.03 percent on Wednesday. Because mortgage rates tend to follow a similar path as long-term bond yields, home loan rates have also risen.
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