Recent housing market and economic improvements have added upward pressure to long-term Treasury bonds yields, pushing fixed mortgage rates higher for the fourth straight week.
The rate for a 30-year FRM averaged 3.66 percent, up from 3.62 percent, during the week ending August 23, according to a report from Freddie Mac. In addition, a 15-year FRM averaged 2.89 percent, which was a slight gain from 2.88 percent the previous week.
"Fixed mortgage rates inched upward this week along with other long-term yields," said Freddie Mac vice president and chief economist Frank Nothaft.
Meanwhile, mortgage records indicate five-year Treasury-indexed hybrid adjustable-rate mortgages increased to an average 2.8 percent, during the same period. In contrast, one-year Treasury-indexed ARMs declined to 2.66 percent, down from 2.69 percent a week earlier.
Although the majority of rates continue to increase, there have been a number of promising developments throughout the real estate industry. For example, median home sale prices increased 9.4 percent in July on an annual basis. This could make more owners willing to sell their homes, since it could result in more profitable return on their investment.