The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.28 percent this week, up from last week when it averaged 3.23 percent.
Consumers with credit card debt, adjustable-rate mortgages and home equity lines of credit will be most affected by a Fed rate hike.
Mortgage rates took a significant jump during the week ended March 16, with the average rate for a 30-year, fixed-rate mortgage (FRM) rising to 4.30%, up from 4.21% the previous week, according to Freddie Mac's Primary Mortgage Market Survey.
Mortgage interest rates moved to the highest level since 2014 last week, as the Federal Reserve indicated it will more than likely increase short-term interest rates at its meeting Wednesday. The 15-year rate stood at 2.99% a year ago. The Fed's decision to raise the federal funds rate came too late to be factored into Freddie Mac's survey. The seasonally adjusted tally from the Mortgage Bankers Association remains 12 percent lower than a year ago, when refinance volume was much more robust.
The mortgages in this week's survey had an average total of 0.28 discount and origination points. Those on a fixed 30-year mortgage will now have to pay 4.30%, which is nine points higher than what it was earlier this week. "We expect that the benefits from growing household incomes will continue to outweigh the headwind of slightly higher mortgage rates", Fratantoni said.
For a full analysis of this week's move in mortgage rates, go to http://www.bankrate.com/finance/mortgages/mortgage-analysis-031517.aspx.
Mortgage rates still remain historically low and "rising rates are not expected to slow down demand this spring homebuying season", said First American chief economist Mark Fleming.
On an unadjusted basis, the composite index increased by 4% week over week.
The MBA's refinance index increased by 4% week over week and the percentage of all new applications that were seeking refinancing rose from 45.4% to 45.6%.
The average rate for a 15-year FRM was 3.50%, up from 3.42%.