US mortgage rates hit highest level in nine months

US mortgage rates climbed for the fifth consecutive week following the Fed’s announcement on Wednesday.

Despite the Fed’s decision to keep rates low, the 30-year fixed-rate mortgage was up four basis points to 3.09% week over week. The uptrend may have been caused by several market conditions, according to Freddie Mac chief economist Sam Khater.

“As expected, mortgage rates continued to inch up but are still hovering around 3%, keeping interested buyers in the market,” Khater said. “However, residential construction has declined for two consecutive months and given the very low inventory environment, competition among potential homebuyers is a challenging reality, especially for first-time homebuyers.”

The average rate for a 15-year fixed loan also rose this week, up to 2.40% from 2.38% the week before. The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) jumped two basis points to 2.79% week over week.