The 30-year fixed mortgage rate surged in the week ending Feb. 15 to reach its highest level since April 2014, according to the Primary Mortgage Market Survey released by Freddie Mac.
The 30-year fixed-rate mortgage averaged 4.38%, with an average 0.6 point, an increase from the 4.32% average in the prior period. The latest average also marks a year-over-year increase from the 4.15% average in the same week in 2016.
The average rate for the 15-year fixed mortgage was 3.84%, with an average 0.5 point, up from the 3.77% average in the previous period. Compared to the year-ago period, the average increased from 3.35%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.63%, with an average 0.4 point, climbing from 3.57% in the prior period. A year ago at this time, the 5-year ARM averaged 3.18%.
“Wednesday’s Consumer Price Index report showed higher-than-expected inflation; headline consumer price inflation was 2.1 percent year-over-year in January, two-tenths of a percentage point higher than the consensus forecast,” Freddie Mac Deputy Chief Economist Len Kiefer said. “Inflation measures were broad-based, cementing expectations that the Federal Reserve will go forward with monetary tightening later this year. Following this news, the 10-year Treasury reached its highest level since January 2014, climbing above 2.9%. Mortgage rates have also surged. After jumping 10 basis points last week, the 30-year fixed-rate mortgage rose six basis points to 4.38%, its highest level since April 2014.”