Although the average US interest rate for a 30-year mortgage rose this week, the interest rate still managed to hover close to last week's 3-year low, according to the latest Freddie Mac Primary Mortgage Market Survey.
According to the company's data, the 30-year fixed-rate mortgage was on average 3.58% for the week ending August 29, 2019, up from last week's rate of 3.55%. One year earlier, the interest rate was 4.52%
"Loan rates increased slightly this week, ending the month with the 30-year fixed rate on average, an average of 3.6% – almost a full percent from the same time last year," said Freddie Mac chief economist Sam Khater. "Low mortgage rates along with a strong labor market provide fuel to the consumer-driven economy that increases their purchasing power, which will certainly support activity in the housing market in the coming months."
The five-year government bond loan with adjustable interest rate averaged 3.31%, slipping from last week's interest rate of 3.33%. Once again, this rate is much lower than the same week in 2018 when it averaged 3.85%.
The image below highlights this week's changes: