MortgageMortgage Rates

Freddie Mac: Mortgage rates edge higher

Still low compared to the close of 2013

Mortgage rates edged higher for the week ended June 12 following higher Treasury yields and the May jobs report, the latest Freddie Mac Primary Mortgage Market Survey found. 

The 30-year, fixed rate mortgage averaged 4.20%, up from 4.14% last week and 3.98% a year ago.

In addition, the 15-yr, FRM hit 3.31%, increasing from 3.23% a week ago and 3.10% in 2013.

The 5-year Treasury indexed hybrid adjustable-rate mortgage rose from 2.93% last week to 3.05% this week. Last year, the 5-year ARM came in at 2.79%.

The 1-year Treasury-indexed ARM averaged 2.40% for the week, unchanged from a week prior, but down from 2.58% a year ago.

“Mortgage rates continued to climb for the second week in a row following the increase in 10-year Treasury yields. Also, the economy added 217,000 jobs in May, following a 282,000 surge in April and a 203,000 increase in March. Meanwhile, the unemployment rate in May held steady at 6.3%,” Frank Nothaft, vice president and chief economist with Freddie Mac, said.

Meanwhile, Bankrate posted similar results with the 30-yr, FRM increasing to 4.34% from 4.32% a week ago.

The 15-yr, FRM hit 3.43%, up from 3.41%, while the 5/1 ARM came in at 3.37%, an increase from 3.31%.

To put this into perspective, Bankrate said, “As 2013 came to a close, the average 30-year fixed mortgage rate was 4.69%. At that time, a $200,000 loan would have carried a monthly payment of $1,036.07.”

“After drifting lower for much of the first five months of 2014, the average rate is now 4.32%, and the monthly payment for the same size loan would be $994.45, a savings of nearly $42 per month for anyone that waited,” Bankrate added. 

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