Mortgage rates, or interest rates on home loans, continue to rise driven by global geopolitical tensions, rising inflation and ongoing supply disruptions, according to mortgage provider Freddie Mac (FMCC.OB).
Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 4.67 percent for the week ending March 31, 2021, up from 4.42 percent last week. A year ago at this time, the average rate was 3.18 percent.
The 15-year FRM this week averaged 3.83 percent, up from 3.63 percent last week. A year ago at this time, the 15-year FRM averaged 2.45 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 3.50 percent, up from last week when it averaged 3.36. It was 2.84 percent a year ago.
"Mortgage rates continued moving upward in the face of rapidly rising inflation as well as the prospect of strong demand for goods and ongoing supply disruptions," said Sam Khater, Freddie Mac's Chief Economist. "Purchase demand has weakened modestly but has continued to outpace expectations. This is largely due to unmet demand from first-time homebuyers as well as a select few who had been waiting for rates to hit a cyclical low."
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