Average fixed mortgage rates rose this week following 10-year Treasury yields higher, increasing for the third consecutive week, according to Freddie Mac.
At 3.85 percent, the average 30-year fixed-rate mortgage is just a basis point below the high for 2015 — 3.86 percent — reached during the week ending March 12.
Higher Treasury yields, combined with a strong jobs report for April, has pushed rates higher, although borrowing costs remain historically low.
The upward trend in mortgage rates is helping drag down refinancing activity. The Mortgage Bankers Association said Wednesday that the refinance share of mortgage applications decreased to 51 percent of total applications last week, its lowest level since May 2014, from 52 percent the previous week.
The bankers’ Market Composite Index, a measure of mortgage loan application volume for both purchases and refinancing, decreased 3.5 percent on a seasonally adjusted basis from one week earlier.
The MBA reported that the average contract interest rate for 30-year fixed-rate mortgages, with conforming loan balances ($417,000 or less), increased to 4.00 percent last week, its highest level since March 2015, for 80 percent loan-to-value ratio (LTV) loans.
Here is Freddie Mac’s rundown of mortgage rates for this week:
- 30-year fixed-rate mortgage (FRM) averaged 3.85 percent, with an average 0.6 point for the week ending May 14, 2015, up from last week when it averaged 3.80 percent. A year ago at this time, the 30-year FRM averaged 4.20 percent.
- 15-year FRM this week averaged 3.07 percent, with an average 0.6 point, up from last week when it averaged 3.02 percent. A year ago at this time, the 15-year FRM averaged 3.29 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.89 percent this week, with an average 0.5 point, down from last week when it averaged 2.90 percent. A year ago, the 5-year ARM averaged 3.01 percent.
- 1-year Treasury-indexed ARM averaged 2.48 percent this week, with an average 0.4 point, up from last week when it averaged 2.46 percent. At this time last year, the 1-year ARM averaged 2.43 percent.