Having jumped 16 basis points (0.16 percentage points) last week, the average rate for a benchmark 30-year mortgage has since inched up another 5 basis points to 3.02 percent, which is the highest average rate in a little over seven months.

That being said, the average 30-year rate is still 27 basis points below its mark at the same time last year, only 37 basis points above its all-time low of 2.65 percent in January, and roughly half the average 30-year rate over the past 30 years. And yet, mortgage loan application volumes have slowed.

At the same time, the average rate for a 15-year fixed mortgage held at 2.34 percent over the past week, which is 45 basis points below its mark at the same time last year, and the average rate for a 5-year adjustable dropped 26 basis points to 2.73 percent, which is 45 basis points below its mark at the same time last year as well.

Comments from Plugged-In Readers

  1. Posted by john downy

    The trend is they are going lower every 5 years and I don’t think I will see them anywhere near 4% in the next decade or two. Low interest rates are here to stay for my lifetime.

  2. Posted by another anon

    I think you’re right. Higher mortgage rates would crush the housing market. Roughly speaking, each 1% increase to mortgage rates decreases home prices by 10%.

    Anyone can test this out on a mortgage calculator (keep the monthly payment the same, raise the rate, then see what happens to the loan amount).

    • Posted by oakland lover

      Disagree on that statement 100%.

      that is textbook academia math IMO. bonds drop -10%, yields rise +11%. Technically true but there are WAY too many other qualitative factors that move around that math equation, which technically holds.

      So I 100% disagree if rates move up 1% home prices drop 10%.Equating the relationship between bond yields and home prices is not accurate IMO, but if you have data to support that it does hold true I would love to see it.

      “real estate is local”

      True now, true forever.

      Disclaimer: (my) opinions are like @holes…you know the rest of that quote, and also, just an armchair architect long time Socketsite follower.

      Fun times we are living in!

      • Posted by Cave Dweller

        Teleconferencing and Networking have entered the chat.
        We are witnessing a historical & global re-configuration of the way humans live.

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