The one-two punch of strong job and consumer credit growth drove mortgage rates up to their highest mark since Aug. 2.
The average 30-year fixed-rate mortgage was at 4.6 percent this week, while the 15-year hit 4.06 percent. The 5/1 adjustable-rate mortgage was 3.93 percent.
Mortgage rates are currently 0.82 percent higher than a year ago – the biggest year-over-year increase since May 2014. Looking ahead, annualized comparisons for mortgage applications may look weaker than they appear primarily because of the large spread between mortgage rates now and last September, which was when they reached their low for 2017.
Overall, a stretch of solid job gains and low unemployment should help keep homebuyer interest elevated.
However, mortgage rates will likely also move up as the Federal Reserve considers short-term rate hikes this month and at future meetings.
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