Fixed mortgage rates displayed little movement this week, though ARMs improved somewhat, according to mortgage financier Freddie Mac.
The benchmark 30-year fixed averaged 4.86 percent for the week ending May 14, up from 4.84 percent last week, but well below the 6.01 percent seen last year.
Similarly, the 15-year fixed inched up a single basis point to 4.52 percent, but still remains more than a point below its year-ago average of 5.60 percent.
“Interest rates for fixed-rate mortgages were little changed this week following the release of April’s employment figures,” said Frank Nothaft, Freddie Mac vice president and chief economist.
“The economy lost 539,000 jobs, less than the monthly job loss of the past five months, and the unemployment rate rose to 8.9 percent. ARM rates, however, fell slightly over the period.
The five-year ARM averaged 4.82 percent this week, down from 4.90 percent a week ago and 5.57 percent a year ago.
The one-year ARM dipped to 4.71 percent from 4.78 percent, and is now nearly half a point lower than its year-ago average.
“Relatively low house prices and interest rates are clearly helping first-time homebuyers. Housing affordability for the median first-time buyer reached an all-time record high in the first quarter since the NAR index began in 1981. Consequently, first-time homebuyers accounted for half of existing home sales in the first three months of this year, the NAR reported.”
Distressed sales, such as short sales and foreclosures, also accounted for half all existing home transactions during the quarter, pulling the median down 13.8 percent.
The rates above are good for conforming mortgages with at least a 20 percent down payment; unfortunately, affordability isn’t as attractive for jumbo mortgages, which are pricing about a point and a half higher than conforming rates.
That may partially explain why the national share of home sales above $750,000 fell to just 2.3 percent this year.
(photo: blmurch)
Related Topics:
