Freddie Mac: Mortgage rates reverse course, move higher
Still well below 4%
Mortgage rates ticked slightly higher amid mixed housing and economic reports this week, the latest Primary Mortgage Market Survey from Freddie Mac said.
The 30-year, fixed-rate mortgage averaged 3.68% for the week ended April 30, 2015, up from last week’s 3.65%, but down from last year’s 4.29%.
In addition, the 15-year, FRM inched higher, moving to 2.94%, up from 2.92% last week. A year ago, it came in at 3.38%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage increased from 2.84% a week ago to 2.85%. In 2014, the 5-year ARM averaged 3.05%.
The 1-year Treasury-indexed ARM averaged 2.49%, up from 2.44% a week prior and 2.45% a year ago.
“Mortgage rates were up slightly following a week of mixed economic releases. Real GDP grew at a paltry 0.2% annualized rate in the first quarter of 2015, well below expectations,” said Len Kiefer, deputy chief economist with Freddie Mac.
“However, the National Association of Realtors’ pending home sales index rose 1.1% in March for the third consecutive month. The S&P/Case-Shiller National House Price Index also rose 5% in February on a yearly basis.”
Bankrate posted similar results, with the 30-year, FRM growing to 3.86%, up from 3.79% last week.
The 15-year, fixed increased to 3.07%, up from 3.03% last week, while the 5/1 ARM moved up to 3.11%, up from 3.09%.
“The increase in mortgage rates this week came despite more evidence of a weak economy in the first quarter. As expected, mortgage rates moved up early in the week ahead of the Federal Reserve meeting, and didn't react much to a report on weak economic growth in the first quarter,” analysts with Bankrate said. “The initial look at first quarter Gross Domestic Product didn't elicit much of a response in bond yields and mortgage rates because it is not only backward looking, but was also widely expected.”