After weeks of holding steady at their lowest levels of the year, mortgage rates for most U.S. home loans saw marginal increases this week.
The average for a 30-year fixed-rate mortgage rose to 4.12% from 4.10% last week, according to the latest survey from mortgage buyer Freddie Mac.
A year ago at this time, the 30-year average was 4.57%.
“Mortgage rates were up slightly this week, following the increase in 10-year Treasury yields, despite last week’s disappointing employment report,” Frank E. Nothaft, Freddie Mac vice president and chief economist, said in a statement.
“The U.S. economy added only 142,000 jobs in August, after a 212,000 gain in July and a 267,000 increase in June. The unemployment rate fell to 6.1% in August from 6.2% the previous month.”
The average rate on a 15-year fixed loan also rose this week, inching up to 3.26% from 3.24% last week. It averaged 3.59% at this time a year ago.
Similarly, averages for the two most popular hybrid adjustable-rate mortgages edged up slightly. The five-year ARM rose to 2.99% this week, from 2.97% last week. A year ago, it averaged 3.22%.
The one-year ARM average is trending at 2.45% this week, up from 2.40% last week. It was at 2.67% at this time last year.
Rates have fallen recently after rising at the end of 2013, when the Federal Reserve announced it would begin to curb its bond-buying stimulus program. The program has helped offset dramatic gains in real estate prices and kept affordability elevated while the market has stabilized.
In the latest Mortgage Rate Trend Index by Bankrate.com, 57% of the loan analysts polled believe mortgage rates will continue to hover around their current levels, while 29% predict rates will increase.
“Bond prices have slipped with the slightly better economic news,” said Derek Egeberg, branch manager at Academy Mortgage in Yuma, AZ. “Look for this trend to continue and for mortgage rates to slide higher through the end of the year.”
It is a great time to buy! Contact us now to start your home search.