McLEAN,Va. – Home loan rates continue to rise for the third straight week, to their highest in eight months, depressing loan demand along the way.
The average for the 30-year, fixed-rate loan leaped from 5.29% last week to 5.59% this week, the highest since the end of November when it was at 5.97%, according to Freddie Mac. The average for the 15-year mortgage also jumped higher, from 4.79% last week to 5.06% this week.
Short-term rates also moved sharply higher this week, with the average for the five-year ARM rising from 5.17% to 4.85%; and the average for the one-year ARM climbing from 4.81% to 5.04%.
Over the three-weeks ending June 5, interest rates for 30-year fixed-rate mortgages rose nearly one-half of a percentage point, according to the Mortgage Bankers Association. As a result, conventional mortgage applications for refinance fell each week, with total mortgage application volume was down 7.2% for the first week of June, compared with the previous week, according to the MBA.
