Alongside rising yields, mortgage rates increase to 2.79%
Though all signs point to them remaining arguably low through the rest of the year.
The average mortgage rate for a 30-year fixed loan rose from its previous record low by 14 basis points this week to 2.79%, according to Freddie Mac’s Primary Mortgage Market Survey. This marks the first time mortgage rates have risen in almost two months.
The 15-year fixed rate also rose slightly this week from 2.16% to 2.23%.
Even with this week’s uptick, there have still been 23 consecutive weeks when average mortgage rates have been below 3%.
According to Sam Khater, Freddie Mac’s chief economist, rising treasury yields have been putting pressure on rates to finally move up again.
“While mortgage rates are expected to increase modestly in 2021, they will remain inarguably low, supporting homebuyer demand and leading to continued refinance activity,” Khater said. “Borrowers are smart to take advantage of these low rates now and will certainly benefit as a result.”
And take advantage they have.