This week, the average U.S. fixed rate for a 30-year mortgage came in at 3.73%. Although this rate is an increase from last week’s percentage, it’s still more than a percentage point below the 4.63% of the year-earlier week, according to the Freddie Mac Primary Mortgage Market Survey.

“Since early September, when mortgage rates posted the year low of 3.49%, rates have moved up to 3.73% this week, said Sam Khater, Freddie Mac’s Chief Economist. “Often, while higher mortgage rates are deleterious, improved economic sentiment is the reason that these higher rates have not impacted mortgage demand so far.”

The 15-year FRM averaged 3.19% this week, rising from last week’s 3.14%. This time last year, the 15-year FRM came in at 4.07%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.36%, sliding from last week’s rate of 3.39%. Last year, the 5-year ARM was significantly higher at 4.04%.

“With Federal Reserve policy on cruise control and the economy continuing to grow at a steady pace, mortgage rates have stabilized as the market searches for direction,” Khater said. “The risk of an economic downturn has receded and, combined with the very strong job market, it should lead to a slightly higher rate environment.”

The image below highlights this week’s changes: