According to one survey of national lenders, the 30 year fixed mortgage interest rate broke 6 percent for the first time in over six months this week. The average interest rate for a 30 year mortgage loan this week is 6.03 percent up from 5.98 percent last week; this is the highest since last March when mortgage interest rates hit 6.04 percent.
Mortgage interest rates have been rising for five weeks; the 10 year Treasury yield has also hit a six month high at 4.5 percent this week. Last fall at this time, the 30 year fixed interest rate mortgage was 5.74 percent. Mortgage interest rates are still at their lowest levels in decades; however, this 6 percent rate could mean higher rates are just over the horizon. The recent rate hikes may have pushed many homebuyers who were on the fence about purchasing into the home market sooner than they would have been; these hikes may also be motivation for others for mortgage refinancing for fear of rate hikes to come. Mortgage analysts predict interest rates will remain near 6 percent for the remainder of the year.
This weekly survey of mortgage lenders also stated the average 15 year mortgage loan this week is 5.62 percent; this is up from 5.54 percent last week and 5.14 percent last fall. The market is anticipating another hike in the benchmark rate by the Fed in its uphill battle to keep inflation in check. The five year hybrid adjustable interest rate mortgage (ARM) is up to 5.57 percent this week, from 5.48 percent last week. One year adjustable rate mortgage loans (ARM) are 4.85 percent this week. One week ago the one year adjustable interest rate mortgage loan (ARM) was 4.77 percent and last fall this adjustable rate mortgage was 4 percent.