Mortgage rates dipped slightly this week, with the average rate for a 30-year fixed rate mortgage (FRM) falling three basis points to 4.55%, down from last week when it averaged 4.58%, according to Freddie Mac’s Primary Mortgage Market Survey.
The decrease comes after rates increased during most of April.
A year ago at this time, the 30-year FRM averaged 4.02%.
“While mortgage rates have increased by one-half of a percentage point so far this year, it has not impacted home purchase demand, which continues to grow this spring,” says Sam Khater, chief economist for Freddie Mac, in a statement. “The observed buyer resiliency in the face of higher rates reflects the healthy economy and strong consumer confidence, which are important drivers of home sales activity.”
“It’s also good news that first-time buyers appear to be having more success so far this year – despite higher borrowing costs and home prices,” Khater adds. “Our data through April show that first-timers represent 46 percent of purchase loans, up from 43 percent over the same period a year ago.”
The average rate for a 15-year FRM this week was 4.03%, up from 4.02%. A year ago at this time, the 15-year FRM averaged 3.27%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.69%, down from 3.74%. A year ago at this time, the five-year ARM averaged 3.13%.
