Mortgage rates in the United States inched up a little over 4 percent for the week ended Oct. 6, marking the second consecutive week of increases, according to Freddie Mac's latest Primary Mortgage Market Survey.

The average 30-year-fixed mortgage rates increased to 4.02 percent from last week's 3.98 percent. The rate was 4.16 percent at the same time, last year.

The average 15-year-fixed mortgage rates also spiked to 3.21 percent from last week's 3.13 percent. It averaged 3.27 percent at the same time, last year.

The five-year treasury-indexed hybrid adjustable mortgage rate improved to 2.97 percent from last week's 2.94 percent. The rate was 2.96 percent a year ago.

The average one-year treasury-indexed adjustable mortgage rate also inched up slightly to 2.45 percent this week from last week's 2.43 percent. The rates averaged 2.61 percent at the same time last year.

Positive market reports spurred the bump in mortgage rates this week, Freddie Mac experts said.

"Mortgage rates continued to rise this week with the 30-year fixed-rate mortgage eclipsing the 4 percent mark. The rate increases coincide with real GDP beating consensus expectations of 3.0 percent growth by growing at an annualized rate of 3.5 percent in the third quarter. The ISM Manufacturing Index also beat expectations registering 59 in October, up from September's reading of 56.6," Frank Nothaft, the vice president and chief economist of Freddie Mac, explained in a statement.

This week's rate increase marks the first largest spike in three weeks. Last week's slight hike affected loan application volume. According to the Mortgage Banking Association, total loan application volume fell 2.6 percent from last week with refinancing applications taking the hit. Purchase application, however, inched up three percent from last week indicating towards healthier housing activity.

"Purchase application volume increased last week, but still remains almost 13 percent below last year's level. The growth in the purchase market is still only at the high end, with continued weakness at the entry level," Michael Fratantoni, chief economist for the MBA, was quoted by CNBC.

Experts still suggest locking down on the rates while they hover at the lows. The Federal Reserve has already ended their bond-buying (quantitative easing) program and a significant rate-rise is not expected until mid 2015. Current rate fluctuations in the near future depend greatly on the jobs upcoming economic reports.

"Mortgage rates seem to have settled at a plateau. Over the longer run, they're going to rise. Although I doubt they'll go up much this week, it's still wise to lock a rate when you're comfortable with it. Unexpected good news could send it upward. The October employment report comes out Friday morning, and that could deliver some of that unexpected good news," Holden Lewis, assistant managing editor at, was quoted by