Fixed mortgage rates hit highest level since mid-January
Rates quiet amid light economic reports
Mortgage rates are quiet from last week and relatively unchanged, Freddie Mac said in its latest Primary Mortgage Market Survey.
The average 30-year, fixed-rate mortgage averaged 4.41% for the week ending April 3, slightly up from 4.40% a week ago, but drastically up from 3.54% a year earlier.
Furthermore, the 15-year, FRM also ticked up to 3.47%, a marginal increase from last week’s 3.42%, but up from 2.74% for the same period in 2013.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.12% this week, barely up from 3.10% a week prior, and up from 2.65% a year ago.
The 1-year Treasury-indexed ARM came in at 2.45% this week, rising from 2.44% last week and 2.63% for the same period a year ago.
“Mortgage rates were little changed amid a week of light economic reports. Of the few releases, real GDP was revised up slightly to 2.6 percent growth in the fourth quarter of 2013,” said Frank Nothaft, vice president and chief economist with Freddie Mac.
“The private sector added an estimated 191,000 jobs in March, which followed an upward revision of 39,000 jobs in February according to the ADP Research Institute. Also, the Institute for Supply Management reported the manufacturing industry rebounded from a soft February but was still below market consensus,” Nothaft continued.
Additionally, Bankrate noted that mortgage rates increased for the second consecutive week in a row.
The average 30-year, FRM escalated to 4.54% from 4.51%, while the 15-year, FRM grew to 3.58% from 3.56% a week prior.
In addition, the 5/1 ARM dipped to 3.34% from 3.36% last week.
“Fixed mortgage rates are at the highest level since mid-January, which is more a testament to how tame rates have been during that time. The average 30-year fixed mortgage rate has stayed within a one-tenth percentage point band over that period of time,” Bankrate said.
“But we have seen a slight uptrend over the past two weeks, particularly with economic and geopolitical jitters waning. Whether the upcoming jobs report keeps this trend intact, or surfaces renewed economic concerns, will determine the next move for mortgage rates,” Bankrate continued.