“Many factors led to this increase, including the Federal Reserve communicating that it will taper its support of the capital markets, the broadening of inflation and emerging energy supply shortages which compound other labor and materials shortages,” Khater said.
Read more: What’s driving housing starts?
Holden Lewis, home and mortgage specialist at NerdWallet, added: “The Federal Reserve has kept mortgage rates artificially low since the pandemic’s early days. But last week, the Fed said it will ease that downward pressure. Even though the Fed hasn’t announced its timetable, mortgage rates rose on the prospect that it will act soon, probably in November.”
Rates for the 15-year loan averaged 2.28%, up from 2.15% a week ago and down from 2.36% at this time last year.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) saw a five-basis-point gain, up to 2.48% from the previous week. A year ago, the five-year ARM was 2.90%.