The prolonged flat, stable period of mortgage rates came to an end this week as rates on the more popular types of mortgages surged, according to the latest data released Thursday by Freddie Mac.
Fixed mortgage rates’ biggest one-week gain this year pushed them to their highest level since early May.
Rates were climbing even before the Federal Reserve’s announcement Wednesday about its plans to wind down its trillion-dollar stimulus program.
The 30-year fixed-rate average spiked to 4.23 percent with an average 0.5 point. It was 4.12 percent a week ago and 4.5 percent a year ago. For the past 12 weeks, the 30-year fixed rate had drifted between 4.1 percent and 4.14 percent. This is the highest it has been since it was 4.29 percent on May 1.
The 15-year fixed-rate average jumped to 3.37 percent with an average 0.5 point. It was 3.26 percent a week ago and 3.54 percent a year ago. The 15-year fixed rate had floated between 3.27 percent and 3.22 percent for the past 12 weeks. This is the highest it has been since it was 3.38 percent on May 1.
Hybrid adjustable rate mortgages were mixed. The five-year ARM average rose to 3.06 percent with an average 0.5 point. It was 2.99 percent a week ago and 3.11 percent a year ago. This is the first time in six weeks the five-year ARM has risen above 3 percent.
The one-year ARM average fell to 2.43 percent with an average 0.4 point. It was 2.45 percent a week ago.
“Fixed-rate mortgage rates rose this week following the increase in 10-year Treasury yields being partially fueled by market speculation the Federal Reserve might change its interest rate guidance,” Frank E. Nothaft, Freddie Mac vice president and chief economist, said in a statement.