According to Freddie Mac's latest Primary Mortgage Market Survey, U.S. mortgage rates moved up slightly over the past week to their highest level since late June 2018.
"The next few months will be key for gauging the health of the housing market," said Freddie Mac Chief Economist Sam Khater. "Existing sales appear to have peaked, sales of newly built homes are slowing and unsold inventory is rising for the first time in three years."
Added Khater, "Meanwhile, affordability pressures are increasingly a concern in many markets, as the combination of continuous price gains and higher mortgage rates appear to be giving more prospective buyers a pause. This is why new and existing-home sales are not breaking out this summer despite the healthy economy and labor market."
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 4.54 percent with an average 0.5 point for the week ending July 26, 2018, up from last week when it averaged 4.52 percent. A year ago at this time, the 30-year FRM averaged 3.92 percent.
15-year FRM this week averaged 4.02 percent with an average 0.4 point, up from last week when it averaged 4.00 percent. A year ago at this time, the 15-year FRM averaged 3.20 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.87 percent this week (unchanged from last week) with an average 0.4 point. A year ago at this time, the 5-year ARM averaged 3.18 percent.
According to the National Association of Realtors, existing-home sales in the U.S. decreased for the third straight month in June 2018, as declines in the South and West exceeded sales gains in the Northeast and Midwest.
According to a new report from the American Institute of Architects, U.S. Architecture firm billings slowed in June 2018, but remained positive for the ninth consecutive month. AIA's Architecture Billings Index (ABI) score for June was 51.3 compared to 52.8 in May.
U.S. mortgage applications increased 2.5 percent from one week earlier. This week's results included an adjustment for the 2018 Fourth of July holiday. The Market Composite Index increased 2.5 percent.
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.
According to the National Association of Realtors, U.S. pending home sales decreased modestly in May 2018, and have now fallen on an annualized basis for the fifth straight month. A larger decline in contract activity in the South offset gains in the Northeast, Midwest and West.