Mortgage rates ticked higher for the first time in two months for the week ending March 3, with the average rate for a 30-year fixed-rate mortgage (FRM) reaching 3.64%, up from last week when it averaged 3.62%, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the 30-year FRM averaged 3.75%.
The average rate for a 15-year FRM was 2.94%, up from 2.93% last week. A year ago at this time, the 15-year FRM averaged 3.03%.
The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 2.84%, up from 2.79% the week prior. A year ago, the five-year ARM averaged 2.96%.
“The market turbulence that kicked off the year subsided at the end of February, providing at least a temporary break in the flight to quality,” says Sean Becketti, chief economist for Freddie Mac. “Treasury yields approached their highest level in a month, boosting the 30-year mortgage two basis points this week to 3.64 percent.”
“Despite this welcome breather, Fed officials have been highlighting the downside risks to the economic outlook, and the market expects the Fed to refrain from any further short-term rate increases for now,” Becketti adds.