Fixed-mortgage rates inched higher for the second consecutive week amid signs of stronger consumer spending, Freddie Mac said in a report Thursday.
The 30-year, fixed-rate mortgage came in at 3.51%, up from 3.42% last week, but down from 3.79% last year, Freddie noted in its Primary Mortgage Market Survey.
The 15-year, FRM increased to 2.69%, up from 2.61%, while falling from 3.04% last year.
Meanwhile, the 5-year Treasury-indexed adjustable-rate mortgage averaged 2.62%, up from 2.58% last week and down from 2.83% a year ago.
Additionally, the 1-year Treasury-index ARM rose to 2.55% this week, compared to 2.53% last week and was also down from 2.78% a year earlier.
“Mortgage rates followed U.S. Treasury bond yields higher this week on signs of stronger consumer spending. Advanced retail sales rose 0.1% in April, above the market forecast consensus of a 0.3% decline. Excluding such items as automobiles and gasoline, sales were up 0.5% for the second time in three months,” said Frank Nothaft, vice president and chief economist of Freddie Mac.
He added, “Households are also shoring up their balance sheets. Total household debt fell by about $110 billion in the first quarter. In addition, approximately 3 million homeowners were seriously delinquent (90 days or more delinquent or in foreclosure) on their first mortgages, down from a peak of about 5.1 million in the fourth quarter of 2009.”
Bankrate data also shows mortgage rates moving higher.
Bankrate’s 30-year, FRM increased to 3.71% from 3.6% a week earlier.
In addition, the 15-year, FRM increased to 2.92%, up from 2.82% last week, while the 5/1 ARM rose to 2.68% from 2.64%.