Mortgage Rates Rise for First Time in 6 Weeks

Man filling out mortage application

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Mortgage rates inched up slightly from their near all-time lows this week. The 30-year fixed-rate mortgage averaged 2.87%, Freddie Mac reported.

“Following last Friday’s strong jobs report, which revealed broad based gains in employment and wage growth, mortgage rates are moving higher,” said Sam Khater, Freddie Mac’s chief economist. “After dropping for six consecutive weeks, the 30-year fixed-rate mortgage increased by 10 basis points week over week. Despite the rise, rates remain very low, particularly given that economic growth is strong and will continue into next year.”

While mortgage rates remain at historical lows, the National Association of REALTORS® predicts rates will rise modestly in upcoming months as the economy continues to recover. NAR predicts that the 30-year fixed-rate mortgage reaches a 3% average for 2021.

Freddie Mac reported the following national averages for the week ending Aug. 12:

  • 30-year fixed-rate mortgages: averaged 2.87%, with an average 0.7 point, rising from last week’s 2.77% average. Last year at this time, 30-year rates averaged 2.96%.
  • 15-year fixed-rate mortgages: averaged 2.15%, with an average 0.7 point, increasing from last week’s 2.10% average. A year ago, 15-year rates averaged 2.46%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.44%, with an average 0.3 point, increasing from last week’s 2.40% average. A year ago, 5-year ARMs averaged 2.90%.

Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining a mortgage.