According to Freddie Mac's latest data, the 30-year fixed-rate average hit 4.17 percent, up five basis points over the previous week and down 30 basis points annually.
The five-year adjustable rate average dropped two basis points over the previous week to 3.78 percent, and the 15-year fixed-rate average increased two basis points to 3.62 percent in that time, The Washington Post reports. “Mortgage rates rose this week, riding strong Chinese economic data to their highest levels in almost a month,” said Matthew Speakman, a Zillow economic analyst. “Weak data and concerns over slowing growth in China and Europe have been central to the patient economic approach taken by the Federal Reserve in recent months. But recent releases showing encouraging trends in Chinese lending, trade and economic growth after months of weakness emboldened markets to pursue riskier assets, pushing bond yields and mortgage rates upwards.”
The 30-year fixed rate has moved higher three weeks in a row but still remains below where it was at the end of March. Speakman said modest increases could continue if favorable economic news persists, but he doesn’t expect rates to take off in the near future.
“Without evidence of a meaningful uptick in U.S. inflation, it is unlikely that mortgage rates will see any substantial increases anytime soon,” Speakman said.