Mortgage Rates Down Slightly

Average mortgage rates took a slight dip in Freddie Mac’s latest Primary Mortgage Market Survey (PMMS), covering the week ending May 3.

 

The 30-year fixed-rate mortgage (FRM) averaged 4.55 percent, down from last week when it averaged 4.58 percent. The 15-year FRM this week averaged 4.03 percent, up from last week when it averaged 4.02 percent. And the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.69 percent, down from last week when it averaged 3.74 percent.

 

“While mortgage rates have increased by one-half of a percentage point so far this year, it has not impacted home purchase demand, which continues to grow this spring,” said Sam Khater, Freddie Mac’s Chief Economist. “The observed buyer resiliency in the face of higher rates reflects the healthy economy and strong consumer confidence, which are important drivers of home sales activity. It’s also good news that first-time buyers appear to be having more success so far this year, despite higher borrowing costs and home prices. Our data through April show that first-timers represent 46 percent of purchase loans, up from 43 percent over the same period a year ago.”

 

Today’s rate news follows yesterday’s unanimous vote by the Federal Reserve’s Federal Open Market Committee not to enact another rate hike.

 

“In view of realized and expected labor market conditions and inflation, the Committee decided to maintain the target range for the federal funds rate at 1-1/2 to 1-3/4 percent,” the Fed explained in a statement. “The stance of monetary policy remains accommodative, thereby supporting strong labor market conditions and a sustained return to two percent inflation.”

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