Mortgage rates held more or less flat during the week ended April 12, with the average rate for a 30-year fixed-rate mortgage (FRM) at 4.42%, up slightly from 4.40% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the 30-year FRM averaged 4.08%.
Except for a slight dip the previous week, rates have basically stayed flat for the past three weeks.
The average rate for a 15-year FRM was 3.87%, same as the previous week. A year ago at this time, the 15-year FRM averaged 3.34%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.61%, down slightly from 3.62% the previous week. A year ago at this time, the five-year ARM averaged 3.18%.
“Mortgage rates have been holding steady over the past two months,” says Len Kiefer, deputy chief economist for Freddie Mac, in a statement. “The U.S. weekly average 30-year fixed mortgage rate was 4.42 percent in this week’s survey.”
“Rates have bounced around 4.4 percent since mid-February,” Kiefer says. “Rates could break out and head higher if inflation continues to firm. The U.S. Bureau of Labor Statistics reported this week that the Consumer Price Index increased 2.4 percent over the 12 months ending in March, the largest 12-month increase in a year. Members of the Federal Reserve’s Federal Open Market Committee are looking at inflation indicators to help determine the appropriate path for policy.
“If inflation continues to trend higher, we may see two or three more rate hikes from the Fed this year, and mortgage rates could follow,” he adds. “For now, mortgage rates are still quite low by historical standards, helping to support homebuyer affordability as the spring home buying season ramps up.”