According to Freddie Mac's latest Primary Mortgage Market Survey, U.S. mortgage rates were unchanged over the past week in early May 2018.
Sam Khater, Freddie Mac's chief economist, says the 30-year fixed mortgage rate remained at 4.55 percent. "The minimal movement of mortgage rates in these last three weeks reflects the current economic nirvana of a tight labor market, solid economic growth and restrained inflation," he said. "As we head into late spring, the demand for purchase credit remains rock solid, which should set us up for another robust summer home sales season."
Added Khater, "While this year's higher rates - up 50 basis points from a year ago - have put pressure on the budgets of some home shoppers, weak inventory levels are what's keeping the housing market from a stronger sales pace."
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 10, 2018 (unchanged from last week). A year ago at this time, the 30-year FRM averaged 4.05 percent.
15-year FRM this week averaged 4.01 percent with an average 0.4 point, down from last week when it averaged 4.03 percent. A year ago at this time, the 15-year FRM averaged 3.29 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.77 percent this week with an average 0.3 point, up from last week when it averaged 3.69 percent. A year ago at this time, the 5-year ARM averaged 3.14 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.