Mortgage rates hitched a ride with rising Treasury yields this week, according to Freddie Mac.
The average rate for a 30-year fixed-rate mortgage jumped seven basis points to 3.66%, Freddie Mac said in its Primary Mortgage Market Survey released Thursday. Despite the increases, all of the rates remained below 4% as the market moves into the spring home-buying season.
Similarly, the average rate for the 15-year FRM rose four basis points to 2.89% and the five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.86% for an increase of five basis points.
While the increase in Treasury yields caused the expansion seen during the week, Freddie Mac's chief economist Sean Becketti warned that observers shouldn't expect a repeat next week.
"The Federal Reserve's decision to leave the federal funds rate unchanged triggered a 9-basis-point drop in the 10-year Treasury yield on Wednesday, however the drop occurred too late to impact this week's survey," he said.
