Mortgage rates reverted back to levels not seen since early December 2008 this week, denting hopes of a housing recovery, according to mortgage financier Freddie Mac.
“30-year fixed-rate mortgage rates caught up to the recent rise in long-term bond yields this week to reach a 25-week high,” said Frank Nothaft, Freddie Mac vice president and chief economist.
“And the slowdown in the housing market has now detracted from economic growth for the past 13 quarters, the longest quarterly stretch since at least 1947, according to the Bureau of Economic Analysis.”
“In the first quarter of 2009 alone, residential fixed investment shaved 1.4 percentage points off of real GDP growth, the most since third quarter of 2006.”
The 30-year fixed averaged 5.29 percent for the week ending June 4, up from 4.91 percent last week, but still below the 6.09 percent seen a year ago.
The 15-year fixed averaged 4.79 percent, up from 4.53 percent last week, but much better than the 5.65 percent seen a year earlier.
The five-year ARM displayed less upward movement, climbing just three basis points to 4.85 percent, and sitting firmly below its year-ago average of 5.51 percent.
The one-year ARM jumped to 4.81 percent from 4.69 percent, still below the 5.06 percent average seen a year ago.
These rates are good for conforming loan amounts with at least a 20 percent down payment.
Jumbo loans continue to price about a percentage point higher or more.
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