Fixed Mortgage Rates Climb
Fixed mortgage rates followed long-term government bond yields higher this week. The average 30-year fixed moved up nearly half a percentage point since the beginning of May when it averaged 3.35 percent. However, mortgage rates continue to hover near historic lows – helping to keep home-buyer affordability high. High home-buyer affordability should continue to aid home sales and construction as the housing market continues to recover.
30-Year Fixed Rate Mortgages
According to Freddie Mac’s Primary Mortgage Market Survey (PMMS) average 30-year fixed rate mortgages moved up to 3.81 from 3.59 percent last week. Last year at this time the 30-year FRM averaged 3.75 percent.
15-Year Fixed Rate Mortgages
Average 15-year fixed rate mortgages rose to 2.98 percent from 2.77 last week. Last year at this time, the 15-year FRM averaged 2.97 percent.
5-Year Adjustable Rate Mortgages
The average five-year Treasury-indexed hybrid adjustable rate mortgage (ARM) moved up to 2.66 percent from 2.63 percent last week. A year ago, the 5-year ARM averaged 2.84 percent.
1-Year Adjustable Rate Mortgages
The average one-year Treasury-indexed ARM fell slightly to 2.54 percent this week from 2.55 last week. Last year at this time, the 1-year ARM averaged 2.75 percent.
Low mortgage rates continue to assist with the housing market recovery. Contact a licensed mortgage loan professional to take advantage of low mortgage rates. Find a loan officer near you.
Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac:
“Fixed mortgage rates followed long-term government bond yields higher following a growing market sentiment that the Federal Reserve may lessen its accommodative policy stance. Improving economic data may have encouraged those views. For instance, the Conference Board reported that confidence among consumers rose in May to its highest level since February 2008. Meanwhile, the S&P/Case-Shiller® 20-city composite index for March rose to its highest reading since November 2008 (seasonally adjusted). All 20 cities had positive monthly gains, led by a 3.2 percent increase in Las Vegas.”
Original Source: Freddie Mac Interest rates listed above are national averages as reported by Freddie Mac. Individual interest rates are dependent upon credit approval and may include points. Average mortgage points are also reported in Freddie Mac’s Primary Mortgage Market Survey. Other mortgage financing fees may apply. Contact your lender for detailed information.
About Inlanta Mortgage
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