Loan rates moved up slightly from their 2016 lows as anticipation grows of a rate hike this summer courtesy of the Federal Reserve, Freddie Mac reported.
The average rate for a 30-year fixed-rate mortgage increased six basis points from a week prior to 3.64%, according to Freddie Mac's Primary Mortgage Market Survey for the week ending May 26. A year ago, the average rate for this loan type was 3.87%.
The 15-year FRM average a rate of 2.89%, seven basis points above where it was a week ago. Last year at this time, the average rate for the 15-year FRM was 3.11.
Similarly, the average rate for a 5-year Treasury-indexed hybrid adjustable-rate mortgage also increased seven basis points week over week to 2.87%, which was still three basis points shy of the level it was at a year ago.
"U.S. Treasury yields moved up in response to the Fed minutes release, which kept alive the possibility of a summer rate-hike," Freddie Mac chief economist Sean Becketti said in a news release Thursday. "Mortgage rates followed."
