Mortgage rates end the week at highest point since July

Mortgage rates reached their highest level since July and are closing in on 4%, according to Freddie Mac.

The 30-year fixed-rate mortgage fixed-rate mortgage averaged 3.94% for the week ending Oct. 26, 2017, up from last week when it averaged 3.88%. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.47%.

"The 10-year Treasury yield surged this week, jumping 12 basis points. The 30-year mortgage rate followed suit, increasing 6 basis points. Today's survey rate is the highest rate in three months," Sean Becketti, Freddie Mac's chief economist, said in a press release.

The 15-year fixed-rate mortgage averaged 3.25%, up from last week when it averaged 3.19%. A year ago at this time, the 15-year fixed-rate mortgage averaged 2.78%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.21%, up from last week when it averaged 3.17%. A year ago at this time, the five-year adjustable-rate mortgage averaged 2.84%.

"Mortgage rates increased late last week after Congress successfully passed a budget resolution, increasing the odds that it will also pass a tax reform package, which in turn would boost economic growth and interest rates," Aaron Terrazas, Zillow's senior economist, said when that company released its own rate tracker on Wednesday.

"The emergence of Stanford economist John Taylor as one of three leading candidates to be the next Fed Chair also pushed rates up — applying his academic research to monetary policy decisions would suggest higher interest rates in the near term. Friday's third-quarter GDP numbers are the most important economic data scheduled for release this week, but markets are expecting the president’s final decision on the next Fed chair," Terrazas said.