U.S. 30-Year Mortgage Rates Jump Above 4%

(RTTNews) - Mortgage rates reached yearly highs this week on the back of increasing bond yields and a strong job data, a survey by Freddie Mac showed Thursday.

Releasing the results of its primary mortgage market survey, Freddie Mac said the 30-year fixed-rate mortgage (FRM) averaged 4.04 percent for the week ending June 11, up from last week when it averaged 3.87 percent. A year ago at this time, the average was 4.2 percent.

This is the first time since November 6, 2014 that the average 30-year fixed-rate mortgage is above 4 percent. This comes amid a strong employment data; in May, the U.S. economy added 280,000 jobs.

Another catalyst for the increase in mortgage rates is demand for refinancing, and an awareness by new home buyers that the days of low mortgage rates are over.

The Freddie Mac survey also shows the 15-year FRM averaged 3.25 percent this week, up from last week's average of 3.08 percent. A year ago at this time, the average was 3.31 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.01 percent this week, up from last week when it averaged 2.96 percent. A year ago, the 5-year ARM averaged 3.05 percent.

The 1-year Treasury-indexed ARM averaged 2.53 percent this week, down from last week's average of 2.59 percent. At this time last year, the 1-year ARM averaged 2.40 percent.

Bond yields around the world hit a new high in the year earlier this week. The 10-year Treasury and the 10-year German bund each reached a new high for the first time since September.