For the week ending September 19, Freddie Mac announced that 30-year fixed rates rose to 3.73% from 3.56% the week before. The average for 15-year loans increased to 3.21% and the average for five-year ARMs moved up to 3.49%. A year ago, 30-year fixed rates averaged 4.65%, almost 1.0% higher than today. “Despite the rise in interest rates, economic data improved this week – particularly housing activity, which gained momentum with a noticeable rise in purchase demand and new construction. Homebuyers flocked to lenders with purchase applications, which were up fifteen percent from a year ago, and residential construction permits increased twelve percent from a year ago to 1.4 million, the highest level in twelve years. While there was initially a slow response to the overall lower rate environment this year, it is clear that the housing market is finally improving due to the strong labor market and low rates,” said Sam Khater, Chief Economist, Freddie Mac. ABBA First continues to see mortgage refinance transactions from clients that had bought their homes less than a year ago looking to take advantage of the new low rate environment. Call 910-332-0650 and see what they can do for you!
Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.