Mortgage Rates Hold Steady
Mortgage rates showed relatively little movement in Freddie Mac’s latest Primary Mortgage Market Survey (PMMS).
The 30-year fixed-rate mortgage (FRM) averaged 4.55 percent for the week ending May 10, unchanged from last week. The 15-year FRM this week averaged 4.01 percent, down slightly from last week when it averaged 4.03 percent. And the five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.77 percent this week, up from last week when it averaged 3.69 percent.
“The minimal movement of mortgage rates in these last three weeks reflects the current economic nirvana of a tight labor market, solid economic growth and restrained inflation,” said Sam Khater, Freddie Mac’s Chief Economist. “As we head into late spring, the demand for purchase credit remains rock solid, which should set us up for another robust summer home sales season. While this year’s higher rates—up 50 basis points from a year ago—have put pressure on the budgets of some home shoppers, weak inventory levels are what’s keeping the housing market from a stronger sales pace.”