The average 30-year, fixed mortgage rate increased this week, to 4.66 percent, according to Freddie Mac’s recently released Primary Mortgage Market Survey® (PMMS®). The average 15-year, fixed mortgage rate also increased, to 4.15 percent, while the five-year, Treasury-indexed hybrid adjustable rate rose to 3.87 percent.
“Mortgage rates so far in 2018 have had the most sustained increase to start the year in over 40 years,” says Sam Khater, chief economist at Freddie Mac. “Through May, rates have risen in 15 out of the first 21 weeks (71 percent), which is the highest share since Freddie Mac began tracking this data for a full year in 1972. At a time when housing inventory remains extremely low, it’s worth watching whether these higher borrowing costs lead some would-be sellers to stay put in their current home. Inventory shortages would likely worsen if more homeowners decide not to sell out of reluctance of having a new mortgage with a higher rate.”
Source: Freddie Mac
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