Freddie Mac released its weekly update on national mortgage rates on Thursday morning, showing continued rises in rates nearly across the board.
Thirty-year fixed-rate mortgages, or FRMs, rose six basis points to 4.20% over the past seven days, while 15-year FRMs jumped eight basis points. to 3.31%. One year ago, 30-year FRMs averaged 3.98% and 15-year mortgages averaged 3.10%.
Five-year adjustable-rate mortgages, or ARMs, shot up even faster in the most recent week, rising 12 basis points to 3.05%. One-year ARMs stood pat at 2.4%. A year ago, 5-year ARMs were at 2.79% and 1-year ARMs at 2.58%.
Freddie Mac Vice President and Chief Economist Frank Nothaft noted in a press release that an increase in 10-year Treasury yields appears to be behind the rise in rates. He also noted that the economy added 217,000 jobs in May, following a 282,000 surge in April and a 203,000 increase in March.
These jobs create paychecks that workers can use to pay higher mortgage rates, helping the rates to rise.