Mortgage rates increased this week after setting a new record low previously, mortgage financier Freddie Mac reported today.
The popular 30-year fixed inched up to 4.87 percent for the week ending April 9, slightly higher than its 4.78 percent average last week, but well below its year-ago average of 5.88 percent.
“Mortgage rates rose slightly this week but still remained historically low,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Interest rates for 30-year fixed-rate mortgages have averaged below 5.0 percent for the last four weeks, which should keep homeowner affordability at record levels.
The 15-year fixed averaged 4.54 percent, up two basis points from last week, but far better than the 5.42 percent seen a year earlier.
The five-year adjustable-rate mortgage increased just a single basis point to 4.93 percent and the one-year ARM averaged 4.83 percent, up from 4.75 percent.
A year ago, the five-year averaged 5.56 percent and the one-year stood at 5.18 percent.
These interest rates are good for conforming loan amounts with a loan-to-value of 80 percent; rates remain substantially higher on jumbo mortgages.
“Given these low rates, housing demand has strengthened. Conventional mortgage applications both for refinancing and for home purchases have increased over the past five consecutive weeks ending April 3,” added Nothaft.
“Since the end of February, applications for home purchases were up about 22 percent and nearly 129 percent for refinancing, according to the Mortgage Bankers Association.”
I guess it’s good to see purchase activity up, but it seems the record low rates still aren’t enough for most prospective homebuyers to jump into this market, and for good reason.
But don’t fret, some economists think interest rates on the 30-year fixed will fall to 4.20 percent by the end of the year.
(photo: mrtindc)
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