US Mortgage Rates Up on News of Stronger InflationLocation: McLean
The 15-year FRM this week
averaged 6.02 percent with an average 0.7 point, up from last week when it
averaged 5.93 percent. A year ago at this time, the 15-year FRM averaged
6.37 percent. The last time the 15-year FRM was higher was the week
ending October 18, 2007, when it averaged 6.08 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.89 percent this week, with an average 0.6 point, up from last week when it averaged 5.70 percent. A year ago, the 5-year ARM averaged 6.31 percent. This is the highest the 5-year ARM has been since the week ending December 27, 2007, when it averaged 5.90 percent. One-year Treasury-indexed ARMs averaged 5.19 percent this week with an average 0.6 point, up from last week when it was 5.09 percent. At this time last year, the 1-year ARM averaged 5.66 percent. (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.) “Fixed-rate mortgage rates continued to climb this week to the highest point in nearly nine months following the release of May’s consumer and producer price indexes, both of which showed stronger levels of inflation,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Additionally, consumer prices rose 0.6 percent last month, the most since November 2007, and traders began to fully price in a Federal Reserve rate hike by the end of September, based on the federal funds futures market. “Meanwhile, the housing market still struggles. New construction of single family (1-unit) homes fell in May to the weakest pace since January 1991 and April’s starts had a downward revision.”
PRIMARY
MORTGAGE MARKET SURVEY RESULTS
30-YEAR FIXED RATE MORTGAGES
15-YEAR FIXED RATE MORTGAGES
5/1 ADJUSTABLE RATE MORTGAGES (ARMs)
Margin 2.76 2.76 2.76 2.76 2.76 2.77 1-YEAR ADJUSTABLE RATE MORTGAGES (ARMs)
Margin 2.76 2.75 2.75 2.75 2.81 2.78 THE NATIONAL MORTGAGE RATE SNAPSHOT
Freddie Mac's Primary Mortgage Market Survey (PMMS) is for informational purposes only and Freddie Mac is not responsible for business decisions made based on the reported results of the PMMS. Freddie Mac may change the methodology used to conduct the PMMS survey at any time and without notice.
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