Consumers Got a Break on Rates, but It May Be Ending

The average rate for a 30-year fixed-rate mortgage came in lower week-to-week in Freddie Mac’s closely watched survey, but more recent long-term rate-indicative yields have been higher.

The rate-indicative 10-year Treasury yield began rising after the release of Federal Reserve minutes showing officials have been considering tapering long-term rate-lowering bond purchases.

Weaker economic data earlier in the week nevertheless pushed the 30-year mortgage rate 13 basis points lower than the previous week.

The average 15-year FRM rate dropped eight basis points lower week-to-week. The average rate for a five-year Treasury-indexed hybrid fell six basis points lower and the average rate for a one-year Treasury-indexed adjustable-rate mortgage remained unchanged.

Points during the most recent week averaged 0.7 of a point for FRMs, 0.5 of a point for five-year Treasury hybrids and 0.4 of a point for one-year Treasury ARMs.

The 30-year rate is almost a full percentage point higher than a year ago. The 15-year rate is a little more than half a percentage point higher year-to-year. The five-year Treasury hybrid rate is 21 basis points higher than a year ago, and the one-year Treasury ARM rate is five basis points higher.