According to Freddie Mac's latest Primary Mortgage Market Survey, fixed mortgage rates in the U.S. posted a fourth consecutive week of increases.
Sam Khater, Freddie Mac's chief economist, says, "Despite the recent rise in mortgage rates, both existing and new home sales continue to show strength - indicating the lagged effect of lower rates on housing demand. This, along with improved affordability, should push housing activity higher in the coming months."
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 4.20 percent with an average 0.5 point for the week ending April 25, 2019, up from last week when it averaged 4.17 percent. A year ago at this time, the 30-year FRM averaged 4.58 percent.
15-year FRM this week averaged 3.64 percent with an average 0.5 point, up from last week when it averaged 3.62 percent. A year ago at this time, the 15-year FRM averaged 4.02 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.77 percent with an average 0.4 point, down from last week when it averaged 3.78 percent. A year ago at this time, the 5-year ARM averaged 3.74 percent.
The Mortgage Bankers Association is reporting in its Annual Mortgage Bankers Performance Report that Independent mortgage banks and mortgage subsidiaries of chartered U.S. banks made an average profit of $367 on each loan they originated in 2018, down from $711 per loan in 2017.
Based on new data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending May 3, 2019, mortgage applications in the U.S. increased 2.7 percent from one week earlier.
According to HUD, the U.S. national vacancy rate in the first quarter 2019 was 7.0 percent for rental housing and 1.4 percent for homeowner housing. The rental vacancy rate of 7.0 percent was virtually unchanged from the rate in the first quarter 2018.
Based on the Mortgage Bankers Association's newly released Builder Application Survey for March 2019, U.S. mortgage applications for new home purchases increased 7 percent compared to a year ago. Compared to February 2019, applications increased by 19 percent. This change does not include any adjustment for typical seasonal patterns.
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