Freddie Mac: Rates Inched Down Slightly

Posted by Patrick Barnard on May 21, 2015 No Comments
Categories : Residential Mortgage

After three consecutive weeks of increases, mortgage rates inched slightly lower during the week ended May 21, compared to the previous week, according to Freddie Mac's Primary Mortgage Market Survey.

The average rate for a 30-year fixed-rate mortgage (FRM) was 3.84%, down slightly from 3.85% the previous week. A year ago at this time, the 30-year FRM averaged 4.14%.

The average rate for a 15-year FRM was 3.05%, down from 3.07%. A year ago at this time, the 15-year FRM averaged 3.25%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.88%, down from 2.89%. A year ago, the five-year ARM averaged 2.96%.

The average rate for a one-year Treasury-indexed ARM was 2.51%, up from 2.48% the week prior. At this time last year, the one-year ARM averaged 2.43%.

‘Mortgage rates were little changed this week amid positive housing news,’ explains Len Kiefer, deputy chief economist for Freddie Mac, in a release. ‘Housing starts surged 20.2 percent to a seasonally adjusted pace of 1.14 million units in April, the highest level since 2007. As the home buying season moves into full swing, home builders remain positive about home sales in the near future. Although the NAHB housing market index slipped two points to 54 in May, it is still above 50, indicating that on balance builders remain optimistic about housing markets.’

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