Average mortgage rates stay level on steady economic growth

Average mortgage rates stay level on steady economic growth

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Mortgage rates were unchanged over the past week, but appear to be headed higher with a robust summer home sales season expected, according to Freddie Mac.

30-Year FRM 15-Year FRM 5/1-Year ARM
Average Rates 4.55% 4.01% 3.77%
Fees & Points 0.5 0.4 0.3
Margin N/A N/A 2.76

The 30-year fixed-rate mortgage averaged 4.55% for the week ending May 10, remaining unchanged from last week. A year ago at this time, the 30-year fixed-rate mortgage averaged 4.05%.

“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. 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,” Sam Khater, Freddie Mac’s chief economist, said in a press release.

“While this year’s higher rates — up 50 basis points from a year ago — have put pressure on the budgets of some home shoppers, weak inventory levels are what’s keeping the housing market from a stronger sales pace,” Khater said.

The 15-year fixed-rate mortgage this week averaged 4.01%, down from last week when it averaged 4.03%. A year ago at this time, the 15-year fixed-rate mortgage averaged 3.29%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.77% this week with an average 0.3 point, up from last week when it averaged 3.69%. A year ago at this time, the five-year adjustable-rate mortgage averaged 3.14%.

“Inflation and employment data over the past week were solid enough to keep the expected interest rate hike in June on track. A recent jump in oil prices should strengthen the near-term inflation outlook, and several speeches over the next week by a couple relatively new FOMC voices could add clarity to the likely path of interest rates beyond June,” Aaron Terrazas, Zillow’s senior economist, said when that company released its own rate tracker on May 9.

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