WASHINGTON, Sept. 19 (Xinhua) -- Mortgage rate rose significantly in the United States last week, the U.S. Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, said on Thursday.
For the week ending Thursday, the 30-year fixed-rate mortgage (FRM) in the United States increased to 3.73 percent from previous week's 3.56 percent.
Despite the rise, the 30-year FRM, also the benchmark mortgage rate, was still lower than the previous year. For the same period in 2018, the 30-year FRM averaged 4.65 percent.
Besides, Freddie Mac noted that the 15-year FRM this week increased to 3.21 percent, which was slightly higher than previous week's reading of 3.09 percent. The 15-year FRM was also lower compared with 4.11 percent for the same period last year.
"Despite the rise in mortgage rates, economic data improved this week -- particularly housing activity, which gained momentum with a noticeable rise in purchase demand and new construction," said Sam Khater, chief economist of Freddie Mac.
"Homebuyers flocked to lenders with purchase applications, which were up 15 percent from a year ago and residential construction permits increased 12 percent from a year ago to 1.4 million, the highest level in 12 years," said Khater.
"While there was initially a slow response to the overall lower mortgage rate environment this year, it is clear that the housing market is finally improving due to the strong labor market and low mortgage rates," Khater added.
Freddie Mac is a corporation founded by U.S. Congress, aimed at promoting the stability and affordability of the U.S. housing market by purchasing mortgages from banks and other loan makers. The corporation has been conducting weekly surveys on U.S. mortgage rate since April 1971.
