Mortgage Giant, Freddie Mac released this weeks Prime Mortgage Market Survey (PMMS) showing the average mortgage rates on a fixed rate rise to the highest rate since last summer.
The surveys reveals the following:
30-year fixed-rate mortgage (FRM) averaged 4.04% rising from 3.99% last week, with an average 0.6 point for the week ending January 18, 2018 this shows a .05% rise from last week.
15-year FRM this week averaged 3.49% jumping from 3.44% with an average 0.5 point, showing a .05% rise from last week.
5/1-year ARM averaged 3.46% percent this week, remaining unchaged from the week before with an average 0.3 point.
According to Len Kiefer, Freddie Mac's deputy chief economist, "Inflation is firming ... This means upward pressure on long-term rates, like the 30-year fixed-rate mortgage, is building."
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.