Long-term mortgage rates rose further during the week ending May 23, following rate-indicative bond yields higher, according to Freddie Mac’s latest survey.
"Fixed-rates moved up for the third consecutive week, with the average 30-year fixed-rate mortgage about a quarter-percentage point higher than three weeks ago,” said Freddie Mac vice president and chief economist Frank Nothaft in his weekly rate report.
The average rate for a 30-year fixed-rate mortgage, week to week, rose by eight basis points to 3.59%; and the average 15-year FRM also was up eight basis points compared to the previous week at 2.77%.
Nothaft said the upward move in the long-term rates would likely slow refinancing momentum, but because rates remain historically low he expects them to continue to support some home sales and construction activity in the weeks ahead.
Shorter-term mortgage rates were more stable during the most recent week.
The average rate for a five-year Treasury-indexed hybrid was up by one basis point at 2.63% during the week ending May 23, and the average rate for a one-year Treasury-indexed adjustable-rate mortgage during that period remained right where it was the previous week at 2.55%.
Averages as far as points during the most recent week were as follows: 0.4 of a point for one-year Treasury ARMs, 0.5 of a point for five-year Treasury hybrids, and 0.7 of a point for 15-year and 30-year FRMs.
A year ago, the average 30-year FRM rate was 3.78%, the average 15-year FRM rate was 3.04%, the average five-year Treasury hybrid rate was 2.85% and the average one-year Treasury ARM rate was 2.75%.