Mortgage rates were more or less flat during the week ended May 10, with the average rate for a three-year fixed-rate mortgage (FRM) averaging 4.55%, unchanged compared with the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the 30-year FRM averaged 4.05%.
“The minimal movement of mortgage rates in these last three weeks reflects the current economic nirvana of a tight labor market, solid economic growth and restrained inflation,” says Sam Khater, chief economist for Freddie Mac, in a statement. “As we head into late spring, the demand for purchase credit remains rock solid, which should set us up for another robust summer home sales season.”
“While this year’s higher rates – up 50 basis points from a year ago – have put pressure on the budgets of some home shoppers, weak inventory levels are what’s keeping the housing market from a stronger sales pace,” Khater adds.
The average rate for a 15-year FRM was 4.01%, down from 4.03% the previous week. A year ago at this time, the 15-year FRM averaged 3.29%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.77%, up from 3.69%. A year ago at this time, the five-year ARM averaged 3.14%.
