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Purchase mortgage rates this week averaged 5.81%<\/a>, compared to 5.78% the week prior, when rates rose 55 basis points, the largest 1-week increase<\/a> since 1987, according to the latest Freddie Mac <\/strong>PMMS index.\u00a0<\/p>\n A year ago at this time, 30-year fixed rate purchase rates were at 3.02%. The PMMS, a government-sponsored enterprise index, accounts solely for purchase mortgages reported by lenders during the past three days.\u00a0<\/p>\n \u201cFixed mortgage rates have increased by more than two full percentage points since the beginning of the year,\u201d said Sam Khater, Freddie Mac\u2019s chief economist, according to a statement. <\/p>\n However, another index showed mortgage rates declining this week.\u00a0<\/p>\n Black Knight<\/strong>\u2019s Optimal Blue<\/a> OBMMI pricing engine, which includes some refinancing data \u2014 but excludes cash-out refis to avoid skewing averages \u2013 measured the 30-year conforming rate at 5.9% Wednesday, down from 6.03% the previous week. The 30-year fixed-rate jumbo was at 5.326% Wednesday, a decline from 5.46% the week prior, according to the Black Knight index.\u00a0<\/p>\n Mortgage rates tend to move in concert with the 10-year Treasury yield<\/a>, which reached 3.16% Wednesday, down from 3.33% a week before.\u00a0<\/p>\n According to Khater, the combination of rising rates and high home prices likely is the driver behind recent declines in existing home sales. <\/p>\n \u201cHowever, in reality, many potential homebuyers are still interested in purchasing a home, keeping the market competitive but leveling off the last two years of red-hot activity.\u201d<\/p>\n Mortgage application<\/a> volumes rose 4.2% from the past week, propelled by borrowers\u2019 demand for purchase loans. Refi applications decreased 3% from the prior week, and purchase apps ticked up 8%, according to the Mortgage Bankers Association <\/strong>(MBA).<\/p>\n According to Freddie Mac, the 15-year fixed-rate purchase mortgage averaged 4.92% with an average of 0.9 point, up from last week\u2019s 4.81%. The 15-year fixed-rate mortgage averaged 2.34% a year ago.<\/p>\n The 5-year ARM averaged 4.41%, with buyers on average paying for 0.3 point, up from 4.33% the week prior. The product averaged 2.53% a year ago. <\/p>\n The post Purchase mortgage rates continue incremental, upward trend<\/a> appeared first on HousingWire<\/a>.<\/p>\n