Freddie Mac Report: Mortgage Loan Rates Rise Again, but Affordability Remains High
In its weekly Primary Mortgage Market Survey, home lending giant Freddie Mac reported that mortgage rates for fixed-rate loans have risen for the sixth consecutive week. The mortgage lender continues to believe that although rates are rising from all-time lows, rates remain low enough to "keep homebuyer affordability high."
The interest rate on a 30-year fixed-rate mortgage rose from a prior week average of 3.91% to 3.98%, well above the rate of 3.71% in the same week a year ago.
One year ago the 15-year fixed-rate stood at 2.98%, but that rate has now jumped from 3.03% last week to 3.1% this week.
The interest rate on a 5-year Treasury adjustable-rate mortgage loan rose from an average of 2.74% in the prior week to 2.79%, and is slightly below the rate of 2.8% in the same week one year ago. The 1-year Treasury-indexed adjustable-rate mortgage loan interest rate remained unchanged at 2.58% and is down from 2.78% one year ago.
Freddie Mac's chief economist noted a growing interest among buyers in adjustable-rate mortgages (ARMs), which now comprise 17% of all mortgage applications.
According to yesterday's data from the Mortgage Bankers Association, new loan applications rose 5% last week. It is likely that most increase came from purchase applications rather than refinance applications, which now account for just under 70% of all loan applications, compared as much as 85% or more when mortgage rates were declining.
Filed under: 24/7 Wall St. Wire, Housing, Research