The benchmark 30-year fixed mortgage rate surged 10 basis points to 4.88 percent from 4.78 percent over the previous week, according to Bankrate.com’s latest survey of the nation’s largest mortgage lenders. That’s the largest weekly jump since April 25, when the benchmark rate rose 15 basis points, and the highest point for the 30-year fixed rate since May 4, 2011.
The average 15-year fixed rate and the average 5/1 adjustable-rate mortgage each climbed 7 basis points to 4.28 percent and 4.27 percent, respectively. A basis point is 1 one hundredth of 1 percent.
Mortgage applications reversed course, ticking up 1.6 percent for the week ending Sept. 14, according to the Mortgage Bankers Association’s latest weekly survey. That marks just the second time in two months that applications have increased. A 3.7 percent bump in refinance applications led the charge, while purchase applications saw a much smaller gain of 0.3 percent.
“In the first full week following Labor Day, applications bounced back,” said Joel Kan, associate vice president of economic and industry forecasting for the MBA, in a statement. “Purchase applications slowed earlier in the summer, but have shown year-over-year increases for the past five weeks.”