In the wake of a number of positive economic reports indicating a strengthening employment market, mortgage rates edged higher during the week ending March 15, Freddie Mac reports.
According to the mortgage giant's Primary Mortgage Market Survey, the rate for a 30-year fixed-rate mortgage averaged 3.92 percent, rising from 3.88 percent a week earlier. Las year at this time, the rate was 4.76 percent. In addition, the average rate for a 15-year FRM inched higher from 3.13 to 3.16 percent.
"An upbeat employment report for February caused U.S. Treasury bond yields to increase over the week and mortgage rates followed," said Freddie Mac vice president and chief economist Frank Nothaft. "The economy gained 227,000 jobs, above the market consensus forecast, and revisions added another 61,000 to January and December."
Meanwhile, mortgage records show that the rate for a 5-year Treasury-indexed hybrid adjustable-rate mortgage slightly rose from 2.81 to 2.83 percent during the week. Additionally, the rate for a 1-year Treasury-indexed ARM averaged 2.73 percent.
Despite the increase, mortgage rates continue to hover near all-time lows. This fact, paired with a recent report from RE/MAX showing that the average home prices is $171,881, has continued to make the prospect of owning a home more affordable.