Mortgage rates improve for sixth straight week in June
Posted on Friday, June 14, 2013 at 12:31:25 PM
As the number of consumers who are seeking residential financing opportunities grows nationwide, evidence of substantial economic strengthening can be found in repeatedly rising mortgage rates.
Freddie Mac's Primary Mortgage Market Survey for the period ending June 13 detailed the increases recently observed in popular adjustable- and fixed-rate lending products, which marked the sixth straight week such gains were noted.
Average 30-year FRMs ticked up to 3.98 percent last week, after previously being recorded at 3.91 percent. Meanwhile, 15-year FRMs increased to 3.10 percent from its prior reading of 3.03 percent.
Frank Nothaft, vice president and chief economist for the government-sponsored enterprise, accredited the latest upticks to positive developments in the labor market.
"Fixed mortgage rates crept up further this week following a solid employment report for May," Nothaft said. "The economy added 175,000 new jobs and the number of discouraged workers fell by 780,000 to the fewest since September 2009."
According to the U.S. Department of Labor, the unemployment rate held firm at 7.6 percent in May amid the considerable job creation. However, additional improvement was seen in the civilian labor force - as it rose by 420,000 - and average hourly earnings for all employees on nonfarm payrolls, as it increased by 1 cent during the month.