Rates Hit Highest Level in 7 Years

Rates Hit Highest Level in 7 Years
Freddie Mac   article by Daily Real Estate News | May 18, 2018

Mortgage rates reversed course and soared to the highest averages in seven years, Freddie Mac reports. The 30-year fixed-rate mortgage averaged 4.61 percent this week, which matches the highest level since May 19, 2011.

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“Healthy consumer spending and higher commodity prices spooked the bond markets and led to higher mortgage rates over the past week,” says Sam Khater, Freddie Mac’s chief economist. “Not only are buyers facing higher borrowing costs, gas prices are currently at four-year highs just as we enter the important peak home sales season. While this year’s higher mortgage rates have not caused much of a ripple in the strong demand levels of buying a home seen in most markets, inflationary pressures and the prospect of rates approaching 5 percent could begin to hit the psyche of some prospective buyers.”

Freddie Mac reports the following national averages with mortgage rates for the week ending May 17:

  • 30-year fixed-rate mortgages: averaged 4.61 percent, with an average 0.4 point, rising from last week’s 4.55 percent average. Last year at this time, 30-year rates averaged 4.02 percent.
  • 15-year fixed-rate mortgages: averaged 4.08 percent, with an average 0.4 point, increasing from last week’s 4.01 percent average. A year ago, 15-year rates averaged 3.27 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.82 percent, with an average 0.3 point, rising from last week’s 3.77 percent average. A year ago, 5-year ARMs averaged 3.13 percent.

Source: Freddie Mac; REALTOR® Magazine Online, Daily Real Estate News 051818

Mortgage Rates Barely Stirred This Week

Mortgage Rates Barely Stirred This Week
Freddie Mac   article by Daily Real Estate News | May 11, 2018

Mortgage rates have mostly taken a pause after a series of rises in April. The 30-year fixed-rate mortgage averaged 4.55 percent last week, unchanged from a week ago.

“The minimal movement of mortgage rates in these last three weeks reflects the current economic nirvana of a tight labor market, solid economic growth, and restrained inflation,” says Sam Khater, Freddie Mac’s chief economist. “As we head into late spring, the demand for purchase credit remains rock solid, which should set us up for another robust summer home sales season.”

Still, mortgage rates are up 50 basis points from a year ago, Khater notes. This has “put pressure on the budgets of some home shoppers” as “weak inventory levels are what’s keeping the housing market from a stronger sales pace.”

Freddie Mac reports the following national averages with mortgage rates for the week ending May 10:

  • 30-year fixed-rate mortgages: averaged 4.55 percent, with an average 0.5 point, unchanged from a week ago. A year ago, 30-year rates averaged 4.05 percent.
  • 15-year fixed-rate mortgages: averaged 4.01 percent, with an average 0.4 point, falling from last week’s 4.03 percent average. A year ago, 15-year rates averaged 3.29 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.77 percent, with an average 0.3 point, rising from last week’s 3.69 percent average. A year ago, 5-year ARMs averaged 3.14 percent.

Source: Freddie Mac; REALTOR® Magazine Online, Daily Real Estate News 051118

Mortgage Rates Surge to 4-Year High

Mortgage Rates Surge to 4-Year High
Freddie Mac   article by Daily Real Estate News | April 27, 2018

Mortgage rates continued their climb this week, reaching their highest level since 2013.

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“Higher Treasury yields, driven by rising commodity prices, more Treasury issuances, and the steady stream of solid economic news are behind the uptick in rates over the past week,” says Sam Khater, Freddie Mac’s chief economist. “Despite the increase in borrowing costs, demand for home purchase credit remains solid.” The Mortgage Bankers Association reported that mortgage applications were up 11 percent from a year ago.

Freddie Mac reports the following national averages with mortgage rates for the week ending April 26:

  • 30-year fixed-rate mortgages averaged 4.58 percent, with an average 0.5 point, rising from last week’s 4.47 percent average. Last year at this time, 30-year rates averaged 4.03 percent.
  • 15-year fixed-rate mortgages averaged 4.02 percent, with an average 0.4 point, rising from last week’s average of 3.94 percent. A year ago, 15-year fixed-rate mortgages averaged 3.27 percent.
  • 5-year hybrid adjustable-rate mortgages averaged 3.74 percent, with an average 0.3 point, increasing from last week’s 3.67 percent average. A year ago, 5-year ARMs averaged 3.12 percent.

Source: Freddie Mac; REALTOR® Magazine Online, Daily Real Estate News 042718