Third Consecutive Week of Increases as Rates Close in on 3.60 Percent Mark

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing fixed mortgage rates trending higher for the third consecutive week and putting pressure on refinance momentum. This week, the 30-year fixed-rate mortgage (FRM) averaged 3.59 percent with an average 0.7 point for the week ending May 23, 2013, up from last week when it averaged 3.51 percent. Last year at this time, the 30-year FRM averaged 3.78 percent. The 15-year FRM this week averaged 2.77 percent with an average 0.7 point, up from last week when it averaged 2.69 percent. A year ago at this time, the 15-year FRM averaged 3.04 percent.  "Fixed-rates moved up for the third consecutive week, with the average 30-year fixed-rate mortgage about a quarter-percentage point higher than three weeks ago," said Frank Nothaft, vice president and chief economist, Freddie Mac. "While this may slow some of the refinance momentum, rates are nonetheless low and home-buyer affordability high, which should further aid home sales and construction in coming weeks. For instance, in April, single family housing permits rose to the strongest pace since May 2008 while existing home sales for the same month grew the most since November 2009." Also this week, the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.63 percent with an average 0.5 point, up from last week when it averaged 2.62 percent. A year ago, the five-year ARM averaged 2.83 percent. The one-year Treasury-indexed ARM averaged 2.55 percent this week with an average 0.4 point, the same as last week. At this time last year, the one-year ARM averaged 2.75 percent. "The National Association of Realtors (NAR) reported that the median number of days on the market for these sales fell from 62 to 46 days, the fewest since it began collecting the data in May 2011," said Nothaft.