NAIL - Mortgage rates take a step up spurred by downstream inflation

30-year fixed rate mortgage rate averages 2.81% in the week ending Feb. 18, vs. 2.73% in the prior week and 3.49% a year ago, according to the Freddie Mac Primary Mortgage Market Survey."Economic spending has improved, due to the most recent stimulus, but supply chain shortages are causing downstream inflation, leading to higher mortgage rates," Freddie Chief Economist Sam Khater said. "While there are multiple temporary factors driving up rates, the underlying economic fundamentals point to rates remaining in the low 3% range for the year."That follows the increase in long-term Treasury yields; the 10-year Treasury yield has increased to 1.31% on Thursday from 1.15% on Friday, Feb. 12.15-year FRM averages 2.21% vs. 2.19% in the prior week and 2.99% a year ago.5-year Treasury-indexed hybrid adjustable rate mortgage averages 2.77% vs. 2.79% a week ago and 3.25% a year ago.Earlier, housing starts fell more than expected as home prices continue to rise.

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Mortgage rates take a step up, spurred by downstream inflation