Mortgage rates inched higher after falling two weeks straight following an uptick in the 10-year treasury note and amid a week of soft housing data.
The latest Freddie Mac Primary Mortgage Market Survey found that the average 30-year, fixed-rate mortgage averaged 4.33% for the week ending April 24, increasing from 4.27% a week ago, but up from 3.40% a year earlier.
In addition, the 15-year FRM grew to 3.39%, a jump from last week’s 3.39%, and significantly up from 2.64% in 2013.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage remained still and averaged 3.03% this week again, but is up from 3.58% last year.
The 1-year Treasury-indexed stayed frozen at 2.44% this week, slightly down from 2.62% for the same period in 2013.
“Mortgage rates edged up following the uptick in the 10-year Treasury note late last week. Existing home sales were essentially flat with a 0.2% decline in March to a seasonally adjusted annual rate of 4.59 million,” Frank Nothaft, vice president and chief economist with Freddie Mac, said.
However, Nothaft added that new home sales fell nearly 15% in March to an annual rate of 384,000, well below consensus.
Similarly, Bankrate recorded mortgage rates moderately increasing.
“The economy has started to shake off the brutal winter that held back the pace of recovery, but Fed Chair Janet Yellen's comments about inflation remaining too low is helping to keep a lid on bond yields and mortgage rates. Mortgage rates are closely related to yields on long-term government bonds,” Bankrate said.
The 30-year, FRM inched up to 4.48% from 4.43% last week.
Meanwhile, the 15-year, FRM escalated to 3.54%, rising from 3.48% last week, while the 5/1 ARM increased to 3.34% from 3.32% a week prior.