Borrowers have enjoyed average fixed rates below 4 percent all year, but that could end in coming months.

Mortgage Rates Hit Highest Level of 2015, But Still Historically Low (30-Year at 3.87%)

Mortgage Rates Hit Highest Level of 2015, But Still Historically Low (30-Year at 3.87%)

When it comes to fixed mortgage rates, it’s a matter of perspective. Borrowers have enjoyed average fixed rates below 4 percent all year. But rates this week hit their high for 2015: 3.87 percent.

A year ago at this time, the 30-year loan averaged 4.12 percent. The last time the 30-year fixed rate was over 4 percent, according to Freddie Mac’s tracking, was the week of Nov. 13, 2014, when it reached 4.01 percent.

The high for all of 2014 was reached the week of Jan. 2, 2014 — 4.53 percent.

Nonetheless, positive housing market data over the past week has helped push rates a little higher. Overall, Federal Reserve watchers are now anticipating that policy makers will begin the long-delayed raising of short-term rates in September at the earliest. That means average mortgage rates could surge over 4 percent again in coming months, barring unforeseen economic or housing market factors.

In her first public comments on monetary policy since late March, Fed Chair Janet Yellen said last week that if the economy continues to improve as she expects, “it will be appropriate at some point this year” to start raising rates.

For now, housing seems to be rebounding after a few lackluster months. New home sales spiked 6.8 percent to an annual pace of 517,000 units in April, according to data released this week. Although existing home sales slipped 3.3 percent to a seasonally-adjusted pace of 5.04 million units, sales are up 6.1 percent on a year-over-year basis.

Here is Freddie Mac’s overview of current mortgage rates:

30-year fixed-rate mortgage (FRM) averaged 3.87 percent, with an average 0.6 point for the week ending May 28, 2015, up from last week when it averaged 3.84 percent. A year ago at this time, the 30-year FRM averaged 4.12 percent.

15-year FRM this week averaged 3.11 percent, with an average 0.5 point, up from last week when it averaged 3.05 percent. A year ago at this time, the 15-year FRM averaged 3.21 percent.

5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.90 percent this week, with an average 0.5 point, up from last week when it averaged 2.88 percent. A year ago, the 5-year ARM averaged 2.96 percent.

1-year Treasury-indexed ARM averaged 2.50 percent this week with an average 0.3 point, down from last week when it averaged 2.51 percent. At this time last year, the 1-year ARM averaged 2.41 percent.

 

 

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