“Historically speaking, rates are still low, but many potential homebuyers are staying on the sidelines due to high home price growth,” Khater said. “Rising mortgage rates combined with growing home prices make affordability more challenging for potential homebuyers.”
Read next: Will bleak September jobs report prompt Fed to initiate debt-ceiling plan?
The 15-year fixed-rate mortgage also increased this week, up by seven basis points to 2.30%. Last year, the 15-year mortgage rate was 2.35%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) posted a three-basis-point increase to 2.55%. A year ago at this time, it averaged 2.90%.