Like a great sandwich, your favorite song, or the movie Space Jam, all good things must come to an end. After five weeks of reporting on dropping rates in the Primary Mortgage Market Survey, some to historic lows, rates have finally risen. 30 & 15-year fixed-rate mortgages, as well as 5-year adjustable-rate mortgages, are on the rise as we may have left the glory days that were the last five weeks. Don’t fret though, the ending of something good means the beginning of great new things; rates are still very low. How low, one might ask? Check out the raw numbers straight from Freddie Mac.
30-year fixed-rate mortgage (FRM) averaged 3.42% with an average 0.7 point for the week ending May 9, 2013, up from last week when it averaged 3.35%. Last year at this time, the 30-year FRM averaged 3.83%.
15-year FRM this week averaged 2.61% with an average 0.7 point, up from last week when it averaged 2.56%. A year ago at this time, the 15-year FRM averaged 3.05%.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.58% this week with an average 0.5 point, up from last week when it averaged 2.56%. A year ago, the 5-year ARM averaged 2.81%.
1-year Treasury-indexed ARM averaged 2.53 %this week with an average 0.4 point, down from last week when it averaged 2.56%. At this time last year, the 1-year ARM averaged 2.73%.
Like trying a meal you’ve never had before, your favorite band releasing a new album or watching Space Jam again, new beginnings happen all the time and should be embraced. That being said, seize these mortgage rates while you still can. As always, we leave you with a further explanation on fluctuating market rates from the Vice President and Chief Economist of Freddie Mac, Frank Nothaft:
“Fixed mortgage rates edged up following a solid employment report for April. The economy gained 165,000 new jobs on net last month, more than the market consensus forecast and the largest monthly increase this year. On top of that, revisions added 114,000 more jobs to February and March as well. All of these factors allowed the unemployment rate to fall to 7.5% in April, the lowest since December 2008.”
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