WASHINGTON–The average rate on the 30-year fixed mortgage rate increased again last week, the eighth consecutive week mortgage rates have risen on all products but one, according to the latest Primary Mortgage Market survey by Freddie Mac.
The survey found the 30-year fixed-rate mortgage averaged 4.43% for the week ending March 1, up from an average 4.40% one week earlier. At the same time in 2017, the rate averaged 4.10%.
Freddie Mac reported the 15-year fixed mortgage rate averaged 3.90% as of March 1, up from one week earlier when it averaged 3.85%. The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.62% on the same date, down from its average of 3.65% last week.
Len Keifer, deputy chief economist at Freddie Mac, attributed the ongoing increases to similar rises in Treasury yields.
“Optimistic testimony on Capitol Hill from Federal Reserve Chairman Jerome Powell sent Treasury yields higher as Powell stated his outlook for the economy has strengthened since December,” said Keifer in a statement. “The 30-year rate has been on a tear in 2018, climbing 48 basis points since the start of the year and increasing for eight consecutive weeks.”
Keifer believes the housing market will remain strong.
“As we documented, historically when mortgage rates surge, housing swoons. But we think the strength in the economy and pent-up housing demand should allow U.S. housing markets to post modest growth this year even with higher mortgage rates,” he said. “We really have to wait for housing markets to heat up in spring, but early indications are that housing demand remains robust to these rate increases.”