Mortgage Rates Edge Up Slightly But Are Forecast to Remain Stable

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Following a 22-basis-point drop two weeks ago, mortgage rates started to edge back up again, with the average rate for a 30-year fixed-rate mortgage increasing to 4.12%, up from 4.08% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.

A year ago at this time, the average rate for a 30-year was 4.22%.

“Rates moved up slightly this week while mortgage applications decreased following last week’s jump in rates – indicating borrower sensitivity to changing mortgage rates,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Despite the recent rise, we expect mortgage rates to remain low, in line with the low 10-year treasury yields, boosting homebuyer demand in the next few months.”

For the week ended April 11, the average rate for a 15-year fixed rate mortgage was 3.60%, up from 3.56% the previous week. A year ago at this time, the average rate for a 15-year was 3.87%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.80%, up from 3.66%.

A year ago at this time, the average rate for a five-year ARM was 3.61%.

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