Rates continue to rise; home prices increase as demand to buy increases; and the cost to build a new home rises with the fear of inflation looming just around the corner.
For the week ending August 12, Freddie Mac announced that 30-year fixed rates increased to 2.87% from 2.77% the week before. The average for 15-year loans rose to 2.15% and the average for five-year ARMs increased to 2.44%. A year ago, 30-year fixed rates averaged 2.96%, slightly higher than today. Attributed to Sam Khater, Chief Economist, Freddie Mac – “Following last Friday’s strong jobs report, which revealed broad based gains in employment and wage growth, mortgage rates are moving higher. After dropping for six consecutive weeks, the 30-year fixed-rate mortgage increased by ten basis points week-over-week. Despite the rise, rates remain very low, particularly given that economic growth is strong and will continue into next year.”
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.