Mortgage Interest Rate Report - May
Last Updated: 5/22/2015
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Long-term mortgage interest rates stayed in an extremely tight range in April, moving only as much as 0.05 percent from high to low point, according to data from mortgage finance company Freddie Mac.
Long-term interest rates were almost unchanged during the first week of April. The average rate on a 30-year fixed rate mortgage (FRM) inched up to 3.70 percent, excluding fees, from 3.69 percent the week before. The 15-year FRM average rose to 2.98 percent from 2.97 percent and the one-year adjustable rate mortgage (ARM) was stable at 2.46 percent.
The next week rates slipped down as the employment numbers came in lower than expected. The 30-year FRM average fell to 3.66 percent and the 15-year FRM rate dropped to 2.93 percent. The one-year ARM was again unchanged at 2.46 percent.
"Mortgage rates fell across the board following last week's disappointing employment report,” said Freddie Mac deputy chief economist Len Kiefer. “The US economy added 126,000 new jobs in March, well below market expectations of 247,000 jobs. We did see some uptick in wages, as average hourly earnings increased 7 cents for the month, and are up 2.1 percent over the year. Meanwhile, jobless claims fell sharply to 268,000 this week, much lower than market expectations of 285,000."
Rates made little movement the next week with the 30-year FRM rate wavered to 3.67 percent and the 15-year average rose to 2.94 percent while the one-year ARM was immovable for the fourth straight week at 2.46 percent.
The fourth week was the low point for April rates. The 30-year FRM average fell to 3.65 percent, the 15-year FRM slid to 2.92 percent and the one-year ARM finally moved, dropping to 2.44 percent.
Rates ticked back up during the last week of the month. "Mortgage rates were up slightly following a week of mixed economic releases,” said Kiefer. “Real GDP grew at a paltry 0.2 percent annualized rate in the first quarter of 2015, well below expectations. However, the National Association of Realtors' pending home sales index rose 1.1 percent in March for the third consecutive month. The S&P/Case-Shiller National House Price Index also rose 5.0 percent in February on a yearly basis."
The 30-year FRM rate rose to 3.68 percent, the 15-year FRM average grew to 2.94 percent and the one-year ARM jumped up to 2.49 percent.
With the Federal Reserve highly unlikely to raise rates at is upcoming meeting and very few other noteworthy economic events expected in May, mortgage interest rates will probably see another month like April – very little movement in either direction.