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Mortgage Rates See an Uptick

Mortgage RatesMortgage rates went up this week according to the Freddie Mac Primary Mortgage Market Survey. Rates went up for the second week in a row for the 30-year fixed rate mortgage.

“Borrowing costs may be slowly on the rise again in coming weeks, as investors remain optimistic about the underlying strength of the economy,” said Sam Khater, Freddie Mac’s Chief Economist. “It’s important to note that rates are now up three-quarters of a percentage point from last year and home prices – albeit at a slower pace – are still outrunning rising inflation and incomes.”

“This weakening in affordability is hindering many interested buyers this fall, even as the robust economy brings them into the market. The good news is that purchase mortgage applications have recently rebounded to above year ago levels,” he added.

The 30-year fixed rate mortgage averaged 4.54 percent with an average 0.5 point, up from 4.52 percent week over week, and up from 3.78 percent year over year.

The 15-year fixed rate mortgage average 3.99 percent with an average 0.4 point, up from 3.97 percent a week before and up from 3.08 percent a year previously. The 5-year ARM averaged 3.93 percent with an average of 0.3 percent, and a year ago at this time, the 5-year ARM averaged 3.15 percent.

“Interest rates moved up slightly this week, bringing the mortgage rate reported by Freddie Mac to 4.54 percent, 76 basis points higher than one year ago,” said Danielle Hale, Realtor.com Chief Economist. “Coupled with higher home prices, this raises the cost of financing a median list-price home by more than $2,000 each year, Strong economic indicators, such as today’s fifty-year low in jobless claims, continue to point to growth ahead and are propelling rates higher. Interest rates may adjust up even more as we near the Fed meeting later this month in which a rate hike is widely expected.”

About Author: Seth Welborn

Seth Welborn is a Harding University graduate with a degree in English and a minor in writing. He is a contributing writer for MReport. An East Texas Native, he has studied abroad in Athens, Greece and works part-time as a photographer.

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