The average interest rate on U.S. 30-year fixed-rate mortgages rose to its highest level in five months with rising Treasury yields, according to mortgage finance agency Freddie Mac.
U.S. mortgage rates rose again this week, though still hover around historically low levels, according to Freddie Mac. The 30-year fixed mortgage averaged 3.57% for the week ending Nov. 10, up from 3.54% the previous week. A year ago, mortgage rates stood at 3.98%.
Favorable mortgage rates played a role in moving U.S. home sales forward, as well as driving the refinance market. “This week’s survey reflects pre-election market conditions,” said Sean Becketti, chief economist at Freddie Mac. “As a result, the 30-year mortgage rate increased to 3.57%, only 3 basis points higher than last week’s level. On Wednesday, the 10-year Treasury yield closed above 2%, about 25 basis points higher than its pre-election value and its highest yield since January. At this point, it is too soon to tell whether Treasuries will hold this new level or if the mortgage rate will increase as much over the coming week.”
The historic low for 30-year rates was 3.31% in November 2012.