US Mortgage Rates Rise to 11-Week High on Inflation JittersLocation: McLean
The 15-year FRM this week
averaged 5.66 percent with an average 0.6 point, up from last week when it
averaged 5.55 percent. A year ago at this time, the 15-year FRM averaged
6.12 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.62 percent this week, with an average 0.5 point, upveryslightly from last week when it averaged 5.61 percent. A year ago, the 5-year ARM averaged 6.19 percent. One-year Treasury-indexed ARMs averaged 5.22 percent this week with an average 0.6 point, down slightly from last week when it was 5.24 percent. At this time last year, the 1-year ARM averaged 5.57 percent. (Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.) “Mortgage rates drifted up this week over market concerns that the Federal Reserve Board may raise short-term rates later this year,” said Frank Nothaft, Freddie Mac vice president and chief economist. “A recent working paper published by the Federal Reserve Bank of Minneapolis suggested that the recent rate cuts run a risk of unhinging long-term market expectations for inflation. Indeed, market inflation expectations increasedover the last few weeks and the federal funds futures market now has a 25 basis point rate hike priced in by the end of the year. “While existing house prices continue to decline, new home sales unexpectedly rose in April and the number of month’s supply of new homes for sale fell from 11.1 months in March to 10.6 months in April. Moreover, the median sales price for new homes rose 1.5 percent in April from the same month in 2007, representing the first yearly increase since November 2007.”
PRIMARY MORTGAGE MARKET SURVEY RESULTS 30-YEAR FIXED RATE MORTGAGES
15-YEAR FIXED RATE MORTGAGES
5/1 ADJUSTABLE RATE MORTGAGES (ARMs)
Margin 2.78 2.84 2.76 2.76 2.78 2.76 1-YEAR ADJUSTABLE RATE MORTGAGES (ARMs)
Margin 2.76 2.78 2.75 2.75 2.79 2.77 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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