Thirty-year mortgage rate inches higher week over week

Thirty-year fixed-rate home loans edged higher this week, increasing roughly half a percentage point from historic lows, according to Freddie Mac’s Primary Mortgage Market Survey.

The lender reported Thursday that the average rate on the 30-year fixed mortgage climbed from 3.09% to 3.17% week over week. A year ago, the benchmark rate averaged 3.50%.

The average 15-year fixed-rate loan, popular among borrowers looking to refinance, was up from 2.40% last week to 2.45%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage rose five basis points to 2.84%.

“During the course of the pandemic, ‘home’ has become more important than ever. As a result, strong purchase demand continues—but buyers also outnumber the sellers,” said Freddie Mac chief economist Sam Khater. “Since January, mortgage rates have increased half a percentage point from historic lows, and home prices have risen, leaving potential homebuyers with less purchasing power. Unfortunately, this has disproportionately affected the low end of the market, where supply is the slimmest.”