Strengthening Economy Lifts Mortgage Rates

The economy is showing several signs of strengthening, including signs from the housing market. Reports this week noted that the real GDP showed 2.5 percent growth in the second quarter while residential construction spending rose for the ninth consecutive month in July, notes Frank Nothaft, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages for the week ending Sept. 5:

  • 30-year fixed-rate mortgages: averaged 4.57 percent, with an average 0.7 point, rising from last week’s 4.51 percent average. Last year at this time, 30-year rates averaged 3.55 percent.
  • 15-year fixed-rate mortgages: averaged 3.59 percent, with an average 0.7 point, rising from last week’s 3.54 percent average. Last year at this time, 15-year rates averaged 2.86 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.28 percent, with an average 0.5 point, rising from last week’s 3.24 percent average. Last year at this time, 5-year ARMs averaged 2.75 percent.

Source: Freddie Mac