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Mortgage rate averages exhibit increases for second consecutive week

Posted on Thursday, May 16, 2013 at 11:36:54 AM

After repeatedly being seen at increasingly lower levels for several straight weeks, the streak in declining mortgage rates was recently snapped by rising averages. 

Freddie Mac reported substantial gains in residential financing products during the week ending May 16, as its latest Primary Mortgage Market Survey showed interest rate averages for both fixed- and adjustable-rate mortgages rising. Increases in consumer spending and the continued bolstering of the national housing market were credited as reasons for the most recent hike.

Average 15-year FRMs ticked up from 2.61 to 2.69 percent last week, while 30-year products rose from 3.42 to 3.51 percent. Additionally, one-year treasury-indexed ARMs were hiked from 2.53 to 2.55 percent, as five-year options appreciated from 2.58 to 2.62 percent.

Not only were heightened figures recently reported in consumer spending and mortgage rates, however. According to a joint report by the U.S. Census Bureau and the Department of Housing and Urban Development, single family building permit authorizations increased 3 percent month-over-month in April, settling at a rate of 617,000.

Though mortgage rates have exhibited growth lately, consumers considering obtaining residential lending and purchasing property are still well-positioned to do so, as interest levels remain relatively low - and may only see further increases in the coming weeks.