Home / News / Government / Mortgage Rates Highest in Seven Months
Print This Post Print This Post

Mortgage Rates Highest in Seven Months

Long-term mortgage interest rates have climbed to their highest levels since late last year, casting a dark cloud on any early signs of a housing recovery and stalling the recent wave of refinances many struggling homeowners employed to get out from under unsustainable mortgages.
According to the ""Primary Mortgage Market Survey"":http://www.freddiemac.com/pmms/release.html (PMMS) issued by ""Freddie Mac"":http://www.freddiemac.com on Thursday, interest rates for 30-year fixed-rate mortgages (FRMs) are now averaging 5.59 percent. Freddie Mac says the last time the 30-year FRM was higher was the week ending November 26, 2008, when it was 5.97 percent. Last week, the average rate for a 30-year FRM was 5.29 percent, and last year at this time, it was 6.32 percent.
Freddie Mac reported the 15-year FRM this week at 5.06 percent. The last time the 15-year fixed-rate product was above that level was the week ending December 11, 2008, when it averaged 5.20 percent. Last week, the 15-year FRM was 4.79 percent, and a year ago, it was 5.93 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.17 percent this week in Freddie Mac's study. The last time they were higher was the week ending February 12, 2009, at 5.23 percent. Last week, the 5-year ARM averaged 4.85 percent. At this time last year, it was 5.51 percent.
One-year Treasury-indexed ARMs averaged 5.04 percent this week. December 11, 2008, was the last time the 1-year ARM came in above that mark, at 5.09 percent. Last week, it was 4.81 percent, and at this time last year, the 1-year ARM was 5.09 percent.
Frank Nothaft, Freddie Mac's VP and chief economist, commented, ""Higher mortgage rates are slowing refinancing activity but not demand for home purchases. Over the three-weeks ending June 5, interest rates for 30-year fixed-rate mortgages rose nearly one-half of a percentage point. As a result, conventional mortgage applications for refinance fell each week during this period while applications for home purchases consecutively rose.""

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
x

Check Also

HUD to Disburse $3.1B in Assistance Funds for Unhoused Peoples

The $3 billion in grants, awarded nationally, will fund over 7,000 projects. It represents the largest amount of annual federal funding provided through HUD’s Continuum of Care program in history.