Rates have seen minimal movement over the last three weeks
Mortgage rates showed minimal movement during the week ending May 10, continuing a trend seen in the previous three weeks, according to the Primary Mortgage Market Survey released by Freddie Mac.
The 30-year fixed-rate mortgage averaged 4.55%, unchanged from the previous period, with an average 0.5 point. A year ago at this time, the mortgage averaged 4.05%.
Rates for the 15-year fixed-rate mortgage average 4.01%, with an average 0.4 point, slipping from the previous average of 4.03%. The latest average also marks a year-over-year increase from the 3.29% average in the same week in 2017.
The average rate for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.77%, with an average 0.3 point, increase from the previous 3.69% average. A year ago at this time, the 5-year ARM averaged 3.14%.
“The minimal movement of mortgage rates in these last three weeks reflects the current economic nirvana of a tight labor market, solid economic growth, and restrained inflation,” Freddie Mac Chief Economist Sam Khater said. “As we head into late spring, the demand for purchase credit remains rock solid, which should set us up for another robust summer home sales season. While this year’s higher rates – up 50 basis points from a year ago – have put pressure on the budgets of some home shoppers, weak inventory levels are what’s keeping the housing market from a stronger sales pace.”
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