It's not surprising that mortgage rates moved higher again this week given that 10-year note yields backed up another 15 basis points from last Friday.
Freddie Mac reported 30-year fixed mortgage rates averaged 3.62% for the week ending Aug. 16, up three basis points from last week.
This is the third straight week of increases. Since hitting a record low of 3.49% at the end of July, mortgage rates have risen 13 basis points. However, over this same period the 10-year note yield has surged 40 basis points.
While mortgage rates usually lag as yields fall, they also tend to lag as well on the way higher.
In other lending programs, 15-year fixed and one-year ARM rates each rose four basis points to 2.88% and 2.69%, respectively, while 5/1 hybrid ARM rates slipped one basis point to 2.76%.
Mortgage refinancing activity is expected to have declined further this week with rates moving higher. Since rates moved off their lows, refinancing activity has declined from its high of 5453 in the week ending July 27 to 5077 by the August 10 week, or 6.9%.