After nearly half a year of record-breaking mortgage rates, borrowers were hit with a third consecutive weekly increase, according to Freddie Mac.
The government-sponsored enterprise's Primary Mortgage Market Survey showed a jump in the average rate for 30-year FRMs, which rose from 3.59 to 3.62 percent for the week ending August 16. This time last year, 30-year FRMs averaged 4.15 percent. Fifteen-year FRMs jumped as well, increasing from 2.84 to 2.88 percent.
"The latest economic indicators point toward low inflation but gradually stronger economic activity which placed further upward pressure on long-term Treasury yields and, in turn, fixed mortgage rates," said Frank Nothaft, vice president and chief economist at Freddie Mac.
A number of positive economic indicators put upward pressure on rates, Nothaft said, including increases in industrial production and retail sales.
Should rates continue their ascent, David Goldberg, analyst with UBS AG, told Bloomberg that demand in the home buying market could increase, with fears of continued rate increases. Buyers will want to get into the market at the most affordable rates possible.
