Home sales continue to grow despite rise in mortgage rates
Fixed mortgage rates continued to climb in four consecutive weeks, according to the results from Freddie Mac’s Primary Mortgage Market Survey.
Last week, the 30-year fixed-rate mortgage averaged 4.20% with an average 0.5 point, up from 4.17% the week before. At the same period last year, the 30-year FRM average rate averaged 4.42%.
The 15-year FRM average rate last week was at 3.64% with an average 0.5 point, slightly rising from 3.62% the week prior but lower than last year’s 4.02% average rate.
The five-year Treasury-indexed hybrid adjustable-rate mortgage dropped to 3.77% with an average 0.4 point from 3.78% the week before. A year ago at this time, the five-year ARM average rate was at 3.74%.
“Despite the recent rise in mortgage rates, both existing and new home sales continue to show strength – indicating the lagged effect of lower rates on housing demand,” said Freddie Mac Chief Economist Sam Khater. “This, along with improved affordability, should push housing activity higher in the coming months.”
