Rates Break 3.90 Percent Mark and Rise for Fifth Consecutive Week

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing fixed mortgage rates climbing higher for the fifth consecutive week on concerns the Federal Reserve may slow its bond purchases amid a strengthening economy. This week, the 30-year fixed-rate mortgage (FRM) averaged 3.91 percent with an average 0.7 point for the week ending June 6, 2013, up from last week when it averaged 3.81 percent. Last year at this time, the 30-year FRM averaged 3.67 percent. The 15-year FRM this week averaged 3.03 percent with an average 0.7 point, up from last week when it averaged 2.98 percent. A year ago at this time, the 15-year FRM averaged 2.94 percent. "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 5th 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," said Frank Nothaft, , vice president and chief economist, Freddie Mac. "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." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.74 percent this week with an average 0.5 point, up from last week when it averaged 2.66 percent. A year ago, the five-year ARM averaged 2.84 percent. The one-year Treasury-indexed ARM averaged 2.58 percent this week with an average 0.4 point, up from last week when it averaged 2.54 percent. At this time last year, the one-year ARM averaged 2.79 percent.