According to Freddie Mac's latest Primary Mortgage Market Survey, the average U.S. mortgage rate dropped for the second consecutive week in April 2018.
Len Kiefer, Deputy Chief Economist of Freddie Mac stated, "After dropping earlier this week on trade-related anxiety in financial markets, the benchmark 10-year Treasury stabilized on Wednesday, but at a level slightly lower than from the start of last week. Mortgage rates followed and fell for the second consecutive week; the U.S. weekly average 30-year fixed mortgage was 4.4 percent in our survey this week. Though rates on the 30-year fixed mortgage are up 0.3 percentage points from the same week a year ago, a robust labor marking is helping home purchase demand weather modestly higher rates. The Mortgage Bankers Association reported in their latest Weekly Mortgage Applications Survey that the Purchase Index was up 5 percent from a year ago indicating that this spring is on track for a modest expansion in purchase mortgage activity."
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 4.40 percent with an average 0.5 point for the week ending April 5, 2018, down from last week when it averaged 4.44 percent. A year ago at this time, the 30-year FRM averaged 4.10 percent.
15-year FRM this week averaged 3.87 percent with an average 0.4 point, down from last week when it averaged 3.90 percent. A year ago at this time, the 15-year FRM averaged 3.36 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.62 percent this week with an average 0.4 point, down from last week when it averaged 3.66. A year ago at this time, the 5-year ARM averaged 3.19 percent.
According to the recently released CBRE U.S. Seniors Housing & Care Investor Survey, the appetite for senior housing acquisitions in the U.S. remains strong, with nearly two-thirds of investors planning to increase the size of their portfolios over the next 12 months.
According to new U.S. housing market research by Zillow, the combination of rising home prices and interest rates creates a doubly challenging environment for would-be home buyers, making monthly mortgage payments on even modestly priced homes more of a financial burden.
Sales of newly built, single-family homes inched down 1.7 percent in July to a seasonally adjusted annual rate of 627,000 units after an upwardly revised June report. On a year-to-date basis, sales are up 7.2 percent from this time last year.
According to a new report from the Mortgage Bankers Association, U.S. mortgage credit availability increased in June 2018. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.