Climbing 11 basis points this week, mortgage rates have hit their highest level since August 22, 2013. The rising commodity prices are creating higher Treasury yields this is aiding in the creation of the rising mortgage rates.
The survey ending April, 26, 2018 reveals the following:
30 year Fixed Rate Mortgage - 4.58 percent with .5 fees/points - This shows a .11 rise from last week.
15 year Fixed Rate Mortgage - 4.02 percent with .4 fees/points - This shows a .08 rise from las t week.
5/1 year Adjustable Rate Mortgage - 3.74 percent with .3 fees/points - This shows a .07 rise from last week.
The experts at bankrate.com expect the rates to continue their upward spiral. According to Michael Becker, branch manager at Sierra Pacific Mortgage, While I expected an increase in mortgage rates over the last week, I was surprised at the abruptness of the move higher, Becker said. Mortgage rates and the 10-year Treasury yield are up about 0.25 percent in a little over a week. That is a pretty big move in a short time. The move higher in rates is even more concerning, considering the sell-off in equity markets. It seems markets are focused on the potential for inflation, a big increase in Treasury issuance due to the Trump tax cut, and receding support for lower rates from the Fed and other central banks around the world.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One-point equals 1 percent of the loan amount.