Mortgage rates moved up again this week, according to data released Thursday, reacting to recent speculation in the market that a Federal Reserve-imposed interest rate increase could be imminent.
The 15-year fixed-rate average rose to 2.92 percent with an average 0.5 point. It was 2.89 a week ago and 3.08 percent a year ago.
The five-year adjustable rate average ticked up to 2.88 percent with an average 0.5 point. It was 2.87 percent a week ago and 2.96 percent a year ago.
“Since jumping 11 basis points on May 18th, the 10-year Treasury yield has leveled-off around 1.85 percent,” Sean Becketti, Freddie Mac chief economist, said in a statement.
“Mortgage rates continue to adjust to this new level with the 30-year fixed rate inching up another 2 basis points this week to 3.66 percent,” he added. “Recent statements by the Fed appear to have persuaded the market that a rate hike may come sooner than later. However, the market is fickle, and Friday’s employment report has the potential to swing opinion 180 degrees in the other direction.”
Meanwhile, mortgage applications decreased this week, according to the latest data from the Mortgage Bankers Association.
The market composite index — a measure of total loan application volume — fell 4.1 percent from the previous week. The refinance index dropped 4 percent, while the purchase index slid 5 percent.
The refinance share of mortgage activity accounted for 54.3 percent of all applications.
