Freddie Mac: Mortgage rate averages tick up in early May
Posted on Thursday, May 9, 2013 at 12:40:27 PM
National mortgage rate averages were observed appreciating during the week ending May 9, after decreasing for the past several consecutive weeks.
Government-sponsored enterprise Freddie Mac announced in its latest Primary Mortgage Market Survey that popular fixed-rate mortgage (FRM) products sustained significant hikes last week. Although rises were exhibited, rates are still situated at low levels, and individuals considering pursuing residential financing are still well-positioned to do so.
Average 15-year FRMs were recorded at 2.61 percent during the period, showing upward movement from the preceding week's record-low reading of 2.56 percent. Meanwhile, 30-year FRMs averaged 3.42 percent, ticking up from the level of 3.35 percent seen the week prior.
"Fixed mortgage rates edged up following a solid employment report for April," said Frank Nothaft, vice president and chief economist for Freddie Mac. "The economy gained 165,000 new jobs on net last month, more than the market consensus forecast and the largest monthly increase this year."
While some consumers contemplating homeownership may be deterred by the recent interest rate rise, the coming weeks and months may only bring additional increases. According to Yahoo Homes, housing industry officials expect 30-year FRMs to average 4.4 percent by year's end. Those who could benefit from the assistance of residential lending may want to act soon.