Everyone calm down. Yes it’s true that rates have risen for the third week in a row and they’re at a high for the year; the Primary Mortgage Market Survey doesn’t lie. Remember, it’s all about perspective. Rates are still incredibly low, near the historic lows we saw a little over a month ago, so we’re not in a period of mortgage rates doom-and-gloom, yet. That “yet” isn’t meant to be mellow dramatic, but we’re seeing a trend of rising mortgage rates, so if you’re considering locking in a rate for a new mortgage or refinance, do it now! Looking at things in a positive perspective can only last for so long. Speaking of looking at things (perspective says that’s a great transition) check out the raw numbers of our rising mortgage rates from Freddie Mac:
30-year fixed-rate mortgage averaged 3.81% with an average 0.8 point for the week ending May 30, 2013, up from last week when it averaged 3.59%. Last year at this time, the 30-year FRM averaged 3.75%.
15-year fixed-rate mortgage this week averaged 2.98% with an average 0.7 point, up from last week when it averaged 2.77%. A year ago at this time, the 15-year FRM averaged 2.97%.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.66% this week with an average 0.5 point, up from last week when it averaged 2.63%. A year ago, the 5-year ARM averaged 2.84%.
1-year Treasury-indexed adjustable-rate mortgage averaged 2.54% this week with an average 0.5 point, down from last week when it averaged 2.55%. At this time last year, the 1-year ARM averaged 2.75%.
As you can see, the rates are still incredibly affordable but we don’t know for how much longer. Every week spent waiting for a better rate is a missed opportunity! Enough of that though, you’re probably concerned on why the rates are rising in the first place. If you are thinking that, listen to the word of Frank Nothaft, vice president and chief economist of Freddie Mac:
“Fixed mortgage rates followed long-term government bond yields higher following a growing market sentiment that the Federal Reserve may lessen its accommodative policy stance. Improving economic data may have encouraged those views. For instance, the Conference Board reported that confidence among consumers rose in May to its highest level since February 2008. Meanwhile, the S&P/Case-Shiller® 20-city composite index for March rose to its highest reading since November 2008 (seasonally adjusted). All 20 cities had positive monthly gains, led by a 3.2% increase in Las Vegas.”
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