Average fixed mortgage rates followed 10-year Treasury yields higher this week, with the 30-year fixed rate near its highest level of the year at 3.80 percent.
The 30-year peaked this year at 3.86 percent during the week of March 12.
“Mortgage rates rose this week to the highest level since the week of March 12 as a selloff in German bunds helped drive U.S. Treasury yields above 2.2 percent,” said Len Kiefer, deputy chief economist, Freddie Mac.
Meanwhile, the Mortgage Bankers Association reported this week that applications for home loans overall were down 4.6 percent last week, led by a drop of 8 percent in refinancing volume.
“Refinance volume dropped last week as rates in the U.S. increased sharply towards the end of the week, with signs of recovery in Europe lifting rates across the globe,” said Mike Fratantoni, MBA’s Chief Economist.
Mortgage loans for purchases increased slightly over the week, and the average loan amount for a purchase application reached a record high. That’s a “sign that the mix of purchase activity is still skewed toward higher priced homes,” said Mike Fratantoni, MBA’s Chief Economist.
Freddie Mac’s overview of mortgage rates for the week:
- 30-year fixed-rate mortgage (FRM) averaged 3.80 percent with an average 0.6 point for the week ending May 7, 2015, up from last week when it averaged 3.68 percent. A year ago at this time, the 30-year FRM averaged 4.21 percent.
- 15-year FRM this week averaged 3.02 percent with an average 0.6 point, up from last week when it averaged 2.94 percent. A year ago at this time, the 15-year FRM averaged 3.32 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.90 percent this week with an average 0.4 point, up from last week when it averaged 2.85 percent. A year ago, the 5-year ARM averaged 3.05 percent.
- 1-year Treasury-indexed ARM averaged 2.46 percent this week with an average 0.4 point, down from last week when it averaged 2.49 percent. At this time last year, the 1-year ARM averaged 2.43 percent.