Freddie Mac: Mortgage Rates Held Flat, But Next Week Could Be Different

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Mortgage rates were more or less flat during the week ended May 19, according to Freddie Mac’s Primary Mortgage Market Survey.

The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.58%, up ever so slightly from 3.57% the previous week. A year ago at this time, the 30-year FRM averaged 3.84%.

The average rate for a 15-year FRM was 2.81%, unchanged from the previous week. A year ago at this time, the 15-year FRM averaged 3.05%.

The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 2.80%, up from 2.78%. A year ago, the five-year ARM averaged 2.88%.

It will be interesting to see whether rates are affected at all by the Fed’s recent indication that an increase in short-term rates could come this June.

“The 10-year Treasury yield saw minimal movement over the past week despite encouraging news from April’s consumer spending and CPI data,” says Sean Becketti, chief economist for Freddie Mac, in a statement. “Accordingly, the 30-year mortgage rate moved up just one basis point from its 2016 low to 3.58 percent. Although there was minimal change in rates this week, the hawkish tone of Wednesday’s Fed minutes release had an immediate impact on Treasury yields and could possibly shake up next week’s survey results.”

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