Mortgage rates of every type jumped higher this week on the heels of increasing bond yields and more positive economic data, according to data released Thursday by Freddie Mac.
The 30-year fixed rate avergage rose from 3.92 percent to 4.08 percent, marking its higherst peak since October 2011. The 15-year average also spiked from 3.16 percent to 3.30 percent, the highest point since November 2011. Still, both are down from one year ago, when the the 30-year averaged 4.81 percent and the 15-year averaged 4.04 percent.
Meanwhile, adjustable-rate mortgages followed the fixed-rates higher, with the average 5-year ARM rising from 2.83 percent to 2.96 percent and the 1-year ARM rising from 2.79 percent to 2.84 percent.
“Mortgage rates are catching up with increases in U.S. Treasury bond yields,” Frank Nothaft, vice president and chief economist for Freddie Mac, said in a statement. “Bond yields rose over the past two weeks in part due to an improving assessment of the state of the economy by the Federal Reserve, better than expected results of commercial bank stress tests and the likelihood of a second bailout for Greece.”
Moreover, new data shows that homeowners’ financial obligations ratio (debt payments as a share of disposable income) has dropped to its lowest level since 1994. Housing starts and sales of exisiting homes also took a dive last month, according to new data from the Commerce Department and the National Association of Realtors, respectively.