For the week ending February 18, Freddie Mac announced that 30-year fixed rates increased to 2.97% from 2.81% the week before. The average for 15-year loans rose to 2.34% and the average for five-year ARMs rose to 2.99%. A year ago, 30-year fixed rates averaged 3.43%, almost 0.50% higher than today. “Optimism continues as the economy slowly regains its footing, thus affecting rates on home loans. Though rates continue to rise, they remain near historic lows. However, when combined with demand-fueled rising home prices and low inventory, these rising rates limit how competitive a potential homebuyer can be and how much house they are able to purchase,” said Sam Khater, Chief Economist, Freddie Mac.
Since February 18, we have see a dramatic increase in rates when on February 25, rates worsened by nearly 100 points, the worst deterioration this year!