Mortgage Rates Jump to 1-Year High; 30-Year Fixed 3.81%

Mortgage Rates Jump to 1-Year High; 30-Year Fixed 3.81%Growing expectations that the Federal Reserve will ease its accommodative policy has pushed bond yields higher, resulting in the highest mortgage rates in a year, Freddie Mac said Thursday.
The 30-year fixed rate averaged 3.81 percent this week, up from 3.59 percent last week. It averaged 3.75 percent a year ago.
The average 30-year fixed has jumped nearly half a percentage point since the beginning of May when it averaged 3.35 percent.
While anything below 4 percent is considered in historically low territory, a string of positive economic reports weighs heavily over the recovering housing market.
A move past 4 percent for the long-term fixed rates could slow down the robust rebound in resales and sales of new homes.
“Improving economic data may have encouraged those views (a Federal Reserve pullback),” said Frank Nothaft, vice president and chief economist, Freddie Mac. “For instance, the Conference Board reported that confidence among consumers rose in May to its highest level since February 2008.”
Additionally, Nothaft pointed to the S&P/Case-Shiller 20-city home price index for March, which rose to its highest reading since November 2008. All 20 cities had positive monthly gains, led by a 3.2 percent increase in Las Vegas.
Here is Freddie Mac’s overview of mortgage rates:
30-year fixed-rate mortgage  averaged 3.81 percent, with an average 0.8 point, for the week ending May 30, 2013, up from last week when it averaged 3.59 percent. Last year at this time, the 30-year fixed rate averaged 3.75 percent.
15-year fixed rate this week averaged 2.98 percent, with an average 0.7 point, up from last week when it averaged 2.77 percent. A year ago at this time, the 15-year FRM averaged 2.97 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.66 percent this week, with an average 0.5 point, up from last week when it averaged 2.63 percent. A year ago, the 5-year ARM averaged 2.84 percent.
1-year Treasury-indexed ARM averaged 2.54 percent this week, with an average 0.5 point, down from last week when it averaged 2.55 percent. At this time last year, the 1-year ARM averaged 2.75 percent.

Leave a Reply

Your email address will not be published. Required fields are marked *