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| As long-term mortgage rates rose, short-term rates eased.
The 30-year fixed-rate mortgage averaged 6.62%, stepping up 2 basis points from a week ago, Freddie Mac announced today. Last year at this time, the average was 97 BPS lower. Fannie Mae said in its May forecast that it does not see the 30-year average going past 6.6% this year, but Freddie’s latest outlook has it ending the year at 6.7% while the Mortgage Bankers Association’s latest prediction has it at 6.9%. The 15-year averaged 6.23%, reportedly edging up 3 BPS within the past seven days. Late Thursday, the 10-year Treasury note yielded 5.07%, 6 BPS above the level a week ago. Down 2 BPS from last week, Freddie said the average for 5-year Treasury-indexed hybrid adjustable-rate mortgages came in at 6.21%. The 1-year Treasury-indexed ARM average, at 5.61%, reportedly was off 1 BPS from a week earlier. Meanwhile, the 1-year T-bill, at 4.97 Wednesday, nudged down 2 BPS within a week, the Federal Reserve said. The ARM share of mortgage applications is currently at 31% — the highest level in about four months, MBA reported. Overall 1003 volume, however, reversed the improvement reported a week ago, falling 6% for the week ending May 19 due to a 7% downturn in purchase money loan demand and a 4% decrease in refinance requests. The refinance share of mortgage activity edged up from the previous week closer to 36%, MBA said. |
Coco Salazar is an assistant editor and staff writer for MortgageDaily.com. e-mail: [email protected]
