Mortgage Rates Basically Flat This Week

After rising to a seven-year high last week, mortgage rates stabilized, with the average rate for a 30-year flat at 4.94%, according to Freddie Mac’s Primary Mortgage Market Survey.

However, that’s a full 1% higher compared with this time last year, when the average rate for a 30-year was 3.95%.

The average rate for a 15-year fixed-rate mortgage (FRM) this week was 4.36%, up from 4.33%. A year ago at this time, the 15-year FRM averaged 3.31%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 4.14%, unchanged from last week. A year ago at this time, the five-year ARM averaged 3.21%.

“Despite recent market volatility, mortgage rates remained steady this week,” says Sam Khater, chief economist for Freddie Mac, in a release. “The stability in mortgage rates reflects the moderation in inflationary pressures in the economy due to lower oil prices and subdued wage growth. On the margin, lower energy costs are a positive for the home sales market, particularly for lower-middle income suburban buyers who spend proportionately more income on transportation costs.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here