According to Freddie Mac's latest Primary Mortgage Market Survey, after steadily rising in most of April 2018, the average U.S. mortgage rate dipped slightly over the past week.
Sam Khater, Freddie Mac's chief economist, says the 30-year fixed mortgage rate declined three basis points to 4.55 percent in this week's survey. "While mortgage rates have increased by one-half of a percentage point so far this year, it has not impacted home purchase demand, which continues to grow this spring," he said. "The observed buyer resiliency in the face of higher rates reflects the healthy economy and strong consumer confidence, which are important drivers of home sales activity."
Added Khater, "It's also good news that first-time buyers appear to be having more success so far this year - despite higher borrowing costs and home prices. Our data through April show that first-timers represent 46 percent of purchase loans, up from 43 percent over the same period a year ago."
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 4.55 percent with an average 0.5 point for the week ending May 3, 2018, down from last week when it averaged 4.58 percent. A year ago at this time, the 30-year FRM averaged 4.02 percent.
15-year FRM this week averaged 4.03 percent with an average 0.4 point, up from last week when it averaged 4.02 percent. A year ago at this time, the 15-year FRM averaged 3.27 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.69 percent this week with an average 0.3 point, down from last week when it averaged 3.74 percent. A year ago at this time, the 5-year ARM averaged 3.13 percent.
The National Association of Realtors is reporting this week that single female buyers continue to be a powerful force in the U.S. housing market, while low inventory, rising interest rates and increasing home prices remain, holding back first-time buyers despite notable interest in buying a home.