It was the first week since late June when the benchmark 30-year fixed-rate loan rose above 3.48%, Freddie noted in a release.
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Despite the big weekly jumps, all three products are much lower than they were a year ago. Other key rates also rose. “The 30-year fixed-rate mortgage followed suit, rising 6 basis points to 3.50 percent this week”.
Uncertainty over whether the Federal Reserve will raise the federal funds target rate at the next policymaking meeting on September 21 has resulted in chaos for financial markets.
What’s up with mortgage rates?
WHAT I SEE: From rate sheets hitting my desk that are not part of Freddie Mac’s survey: Locally, well qualified borrowers can get the following conforming and jumbo interest-only adjustable rate loans with one point: 3-year at 3.875 percent, 5-year at 3.625 percent, 7-year at 3.875 percent, 10-year at 3.625 percent.
“The 10-year Treasury yield rose 18 basis points to 1.73%, its highest level since Brexit”, Freddie Mac Chief Economist Sean Becketti said. The MBA estimated new single-family home sales were running at a seasonally adjusted annual rate of 601,000 units in August, an increase of 11.3 percent from the July pace of 540,000 units.
The 15-year fixed mortgage rate edged up to 2.77 per cent from 2.76 per cent. However, it is still down from 3.11% past year.
The average fee for a 30-year mortgage fell to 0.5 point this week from 0.6 point last week.
Meanwhile, mortgage applications moved higher this week, according to the latest data from the Mortgage Bankers Association. This is down from 2.92% a year ago. The refinance index increased 2 percent, while the purchase index increased 9 percent.
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“Real median income rose for the first time since 2007 past year, increasing by 5.2 percent according to newly released data from the U.S. Census Bureau”, said Lynn Fisher, MBA’s vice president of research and economics.
