Mortgage rates jump to highest point since 2013 as 10-year Treasury tops 3%

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Mortgage rates jump to highest point since 2013 as 10-year Treasury tops 3%

  • 28 April, 2018
  • By Admin: Robert Casas
  • Comments: 00

Mortgage rates shot up this week as the 10-year Treasury yield edged past the 3 percent mark on signs of inflation.

The average rate on 30-year fixed mortgages jumped 15 basis points this week to 4.73 percent, up from 4.58 percent last week, according to Bankrate’s survey of large lenders. This is the highest it’s been since the average rate was 4.74 percent on Aug. 21, 2013.

“Mortgage rates are on the rise because inflation is picking up, and so is the amount of government borrowing,” says Greg McBride, CFA, Bankrate’s chief financial analyst.

Rates won’t deter buyers, but inventory might

Although mortgage rates are up nearly three-quarters of a percent over the past five months, the main stumbling block for homebuyers is likely the availability of affordable housing, McBride says.

“Interest rates are rising because the economy is in much better shape. More people are working, they’re bringing home more money and they’re feeling more secure in their jobs. That’s what gets people to buy houses — and they’ll buy houses whether rates are 4.7 percent or 3.7 percent,” McBride says. “They may need to buy a less expensive house now that rates have increased, but the positive economic backdrop is conducive to homebuying activity — if they can find homes that are for sale.”

Mortgage rates this week

The benchmark 30-year fixed-rate mortgage rose this week to 4.73 percent from 4.58 percent, according to Bankrate’s weekly survey of large lenders. A year ago, it was 4.19 percent. Four weeks ago, the rate was 4.54 percent. The 30-year fixed-rate average for this week matches the 52-week high of 4.73 percent, and is 0.78 percentage points higher than the 52-week low of 3.95 percent.

The 30-year fixed mortgages in this week’s survey had an average total of 0.30 discount and origination points.

Over the past 52 weeks, the 30-year fixed has averaged 4.20 percent. This week’s rate is 0.53 percentage points higher than the 52-week average.

  • The 15-year fixed-rate mortgage rose to 4.16 percent from 4.02 percent.
  • The 5/1 adjustable-rate mortgage rose to 4.10 percent from 4.03 percent.
  • The 30-year fixed-rate jumbo mortgage rose to 4.60 percent from 4.51 percent.

At the current 30-year fixed rate, you’ll pay $520.44 each month for every $100,000 you borrow, up from $511.45 last week.

At the current 15-year fixed rate, you’ll pay $747.73 each month for every $100,000 you borrow, up from $740.69 last week.

At the current 5/1 ARM rate, you’ll pay $483.20 each month for every $100,000 you borrow, up from $479.15 last week.

Results of Bankrate.com’s weekly national survey of large lenders conducted April 25, 2018, and the effect on monthly payments for a $165,000 loan:

Weekly national mortgage survey
Breakdown 30-year fixed 15-year fixed 5-year ARM
This week’s rate: 4.73% 4.16% 4.10%
Change from last week: +0.15 +0.14 +0.07
Monthly payment: $858.73 $1,233.76 $797.28
Change from last week: +$14.84 +$11.62 +$6.69

The “Bankrate.com National Average,” or “national survey of large lenders,” is conducted weekly. The results of this survey are quoted in our weekly articles and national media outlets. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the Bankrate.com national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We’ve conducted this survey in the same manner for more than 30 years, and because it’s consistently done the way it is, it gives an accurate national apples-to-apples comparison.

 

Source: https://www.bankrate.com/mortgages/analysis/

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