Mortgage rates jump again for 2nd week and hit 2017 highs

  • Mortgage rates jump again for 2nd week and hit 2017 highs

Mortgage rates jump again for 2nd week and hit 2017 highs

The 5-year adjustable rate mortgage (ARM) averaged 3.28%, up from 3.23% last week and 2.93% from a year ago.

And mortgage rates probably won't stop rising.

The 30-year fixed-rate mortgage averaged 4.30% during the week, up from 4.21% a week ago, and the 15-year fixed averaged 3.50%, up from 3.42% last week.

Mortgage interest rates moved to the highest level since 2014 last week, as the Federal Reserve indicated it will more than likely increase short-term interest rates at its meeting Wednesday. Refinance activity remains 27 percent lower versus a year ago. The Fed's decision to raise the federal funds rate came too late to be factored into Freddie Mac's survey. A year ago, the five-year ARM averaged 2.93%.

This will happen partly just due to higher mortgage interest rates, which will provide a bit of a cushion for lenders to take on a little more risk. Over the past two weeks, rates have increased 20 basis points.

This is the highest rate for the 30-year fixed since April 23, 2014, when it was 4.48 percent.

"Increasing inflation, continued gains in the labor market and the Fed's intentions for further rate increases-all three will keep pushing mortgage rates up this year", the company said in a release.

The mortgages in this week's survey had an average total of 0.28 discount and origination points.

For a full analysis of this week's move in mortgage rates, go to

Wednesday's "widely anticipated interest rate increase is a reflection on the broad-based strength of the US economy, and already partially priced into mortgage markets", Svenja Gudell, chief economist at Zillow, said in a statement. The remaining 28 percent of respondents predict mortgage rates will resume their climb during the next seven days.

Meanwhile, mortgage applications increased last week, according to the latest data from the Mortgage Bankers Association.

The contract interest rate for a 5/1 adjustable-rate mortgage loan decreased from 3.48% to 3.45%.