Mortgage Rates Continue To Rise, Highest Since May 2019

(RTTNews) - Mortgage rates, or interest rates on home loans, continues to rise and are reaching nearly 3-year highs, according to mortgage provider Freddie Mac (FMCC.OB).

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 3.92 percent for the week ending February 17, 2021, up from 3.69 percent last week. A year ago at this time, the average rate was 2.81 percent.

The 15-year FRM this week averaged 3.15 percent, up from 2.93 percent last week. A year ago at this time, the 15-year FRM averaged 2.21 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 2.98 percent, up from last week when it averaged 2.80. It was 2.77 percent a year ago.

"Mortgage rates jumped again due to high inflation and stronger than expected consumer spending," said Sam Khater, Freddie Mac's Chief Economist. "The 30-year fixed-rate mortgage is nearing four percent, reaching highs we have not seen since May 2019. As rates and house prices rise, affordability has become a substantial hurdle for potential homebuyers, especially as inflation threatens to place a strain on consumer budgets."