Recent lower rates and robust labor market may have upset the trend, says expert
Mortgage rates increased last week after weeks of moderating, according to the results of Freddie Mac’s Primary Mortgage Market Survey.
For four weeks in a row, mortgage rates remained below last year’s levels. But rates climbed “very modestly” climbed to 4.41% last week, said Sam Khater, Freddie Mac chief economist.
“In late 2018, mortgage rates rose over a full percentage point from the prior year, which was one of the main reasons that weakness in home sales continued into early 2019,” said Khater. “However, the impact of recent lower rates and a strong labor market has led to a rise in purchase mortgage demand as we start the spring homebuying season.”
The survey showed that the 30-year fixed-year mortgage (FRM) averaged 4.41% with an average 0.5 point for the week ending March 7. It rose from last week’s 4.35% but was lower than last year’s 4.46% 30-year FRM average.
The 15-year FRM averaged 3.83% this week with an average 0.4 point, up from last week’s average of 3.77%. Last year at this time, the 15-year FRM averaged 3.94%. Meanwhile, this week’s 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.87% with an average point of 0.3, went slightly up from last week’s 3.84%. A year ago at this time, the 5-year ARM averaged 3.63%
