After falling for five straight weeks, the 30-year, fixed-rate mortgage (FRM) rose this week, according to Freddie Mac.
The government-sponsored enterprise (GSE) Thursday released its weekly Primary Mortgage Market Survey (PMMS), which shows the 30-year FRM averaged 6.39%, up 12 basis points.
The increase followed last week’s slight decline of just 1 basis point.
The 15-year fixed mortgage rate also rose, after declining for six straight weeks.
“For the first time in over a month, mortgage rates moved up due to shifting market expectations,” said Sam Khater, Freddie Mac’s chief economist. “Home prices have stabilized somewhat, but with supply tight and rates stuck above 6%, affordable housing continues to be a serious issue for many potential homebuyers. Unless rates drop into the mid-5% range, demand will only modestly recover.”
Mortgage rates
- 30-year fixed-rate averaged 6.39% as of April 20, up from 6.27% last week. A year ago, the rate averaged 5.11%.
- 15-year fixed-rate mortgage averaged 5.76%, up from 5.54% last week. A year ago, it averaged 4.38%.
George Ratiu, chief economist for Keeping Current Matters, noted that mortgage rates rebounded after the 10-year Treasury increased.
“The Freddie Mac 30-year fixed mortgage rate broke a five-week stretch of declines with a rebound, rising to 6.39%, following the gain in the 10-year Treasury, which moved from 3.2% in the first week of April to 3.6% this week,” Ratiu said. “Investors are weighing the softening consumer sector and inflationary pressures, along with the shifts in real estate markets, looking for more clarity on the outlook.”
Inflation remains a concern, he said, “keeping the Federal Reserve in a hawkish position, poised to push the policy rate up by another 25 basis points at its May meeting. … Meanwhile, homebuilder confidence in the housing market has been on a rebound, boosted by signs that buyers are adjusting to higher rates and embracing the spring season with more open house visits.”
With monetary policy on a tightening path and price growth still gaining, Ratiu added, “the 30-year fixed mortgage rate will continue bouncing in the 6% to 7% window, where it’s been since September 2022.”
The PMMS is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit.
