You read that right, folks. After months of dropping mortgage rates, we’ve seen rates inch higher for weeks. Rates are still low in historical comparison, but there’s no telling how much longer they’ll stay at these low levels. How much have rates risen? Let me explain metaphorically for this week’s Primary Mortgage Market Survey.
If mortgage rates were a growing kid, they’d finally be tall enough to ride a roller coaster this summer.
If mortgage rates were a growing stalk of corn, they’d be knee high by the fourth of July.
If mortgage rates were an elevator, they’d be at floor 3.91, assuming it was a 30-year fixed-rate elevator. Okay, that last one went a bit far. If you don’t learn well through metaphors, just take a look at the raw numbers straight from Freddie Mac.
30-year fixed-rate mortgage (FRM) averaged 3.91% with an average 0.7 point for the week ending June 6, 2013, up from last week when it averaged 3.81%. Last year at this time, the 30-year FRM averaged 3.67%.
15-year FRM this week averaged 3.03% with an average 0.7 point, up from last week when it averaged 2.98%. A year ago at this time, the 15-year FRM averaged 2.94%.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.74% this week with an average 0.5 point, up from last week when it averaged 2.66%. A year ago, the 5-year ARM averaged 2.84%.
1-year Treasury-indexed ARM averaged 2.58% this week with an average 0.4 point, up from last week when it averaged 2.54%. At this time last year, the 1-year ARM averaged 2.79%.
Another interesting fact in mortgage rates this week is this is the first time the 15-year fixed rate has risen above 3% since May 24 of last year. Hop on these rates while you can, folks! These rates are inching up higher than a snail on a…on a…Stairmaster. There’s no more creativity left in this PMMS report, but if you prefer your news brought to you straight, read this quote from Frank Nothaft, vice president and chief economist of Freddie Mac, explaining the how and why of market fluctuations.
“Continuing market concerns that the Federal Reserve may slow its bond purchases amid a strengthening economy added upward pressure on mortgage rates this week. In its June 5 regional economic conditions report, known as the Beige Book, the Federal Reserve noted that overall economic activity increased at a modest to moderate pace over April and May in all its districts except for Dallas which indicated strong economic growth. In addition, pending home sales rose in April to its fastest pace since April 2010 and May’s consumer sentiment was revised upwards to its highest reading since July 2007.”
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