Mortgage Daily Logo

Fixed Mortgage Rates Surge


Fixed mortgage rates surged this week, and market data indicate that there is little chance they will retreat by next week’s report. One adjustable-rate product, however, was lower.

Thirty-year fixed rates averaged 3.81 percent in Freddie Mac’s Primary Mortgage Market Survey for the week ended May 30.

That was up a whopping 22 basis points from the last report and 6 BPS worse than the same week in 2012.

The last time the 30 year was this high was the week ended May 10, 2012, when the rate was 3.83 percent.

“Fixed mortgage rates followed long-term government bond yields higher following a growing market sentiment that the Federal Reserve may lessen its accommodative policy stance,” Freddie Mac Chief Economist Frank Nothaft explained in the report. “Improving economic data may have encouraged those views. For instance, the Conference Board reported that confidence among consumers rose in May to its highest level since February 2008.”

Freddie’s regulator and conservator, the Federal Housing Finance Agency, reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders index was 3.56 percent for loans closed in late April, “up 0.02 percent from March.”

Most Federal Reserve directors voted on April 25 to keep the primary credit rate at 3/4 percent.

Fed meeting minutes indicate that economic expansion has been moderate, and economic activity has been mixed. In addition, the housing sector has improved, job growth is considered modest and unemployment remained elevated.

“Overall, directors continued to see downside risks to the outlook, and they expressed concern that unresolved fiscal issues could be restraining hiring and economic growth more broadly,” the minutes said. “Inflation was seen as subdued, and longer-term inflation expectations generally had remained stable.”

Mortgage rates aren’t likely to be a whole lot different in Freddie’s next survey based on a Mortgage Daily analysis of this week’s Treasury market activity.

Data provided by the Department of the Treasury indicate that the benchmark 10-year Treasury note yield averaged 2.10 percent during the period which Freddie surveyed lenders for this week’s report, while the 10-year yield closed at 2.13 percent Thursday.

Forty percent of panelists surveyed by for the week May 30 to June 5 predicted that mortgage rates will increase at least 3 BPS over the next week, though the same share saw lower rates ahead. Just 20 percent expect no movement.

The U.S. Mortgage Market Index report from LoanSifter and Mortgage Daily for the week ended May 24 indicated that jumbo mortgages were priced 26 BPS higher than conforming loans, virtually unchanged from a week prior.

Freddie reported the average 15-year, fixed-rate mortgage at 2.98 percent, up 21 BPS from the week ended May 23. At 83 BPS, the spread between 15- and 30-year mortgages widened from 82 BPS in the previous report.

The five-year, Treasury-indexed, hybrid, adjustable-rate mortgage averaged 2.66 percent versus 2.63 percent last week, according to Freddie’s survey.

A one-basis-point decline from a week earlier left the one-year Treasury-indexed ARM averaging 2.54 percent in Freddie survey. The one year averaged 2.75 percent in the week ended May 31, 2012.

The index for the one-year ARM, the yield on the one-year Treasury note, inched up to 0.13 percent today from 0.12 percent last Thursday, according to the Treasury Department data.

At 0.42 percent as of Wednesday, the six-month London Interbank Offered Rate was the same as the previous Wednesday, according to

ARMs accounted for 4.5 percent of activity in the latest Mortgage Market Index report. ARM share was 4.7 percent a week earlier.

Related Posts

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Up 92 BPS From Year Ago Weekly interest rates might continue holding Oct. 25, 2018 By SAM GARCIA Mortgage Daily Over the past year, weekly fixed interest rates on single-family loans have soared 92 basis points. But little change was reported from last...

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Up 92 BPS From Year Ago

Over the past year, weekly fixed interest rates on single-family loans have soared 92 basis points. But little change was reported from last week, and more of the same is expected. On conventional loans utilized to finance a home purchase with amounts up to the...

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rate Forecasts Have Little Change Ahead

Thirty-year mortgage rates moved lower this past week and this past month. Short- and long-term forecasts have little movement ahead for mortgage rates. Ellie Mae Inc.'s Origination Insight Report | September 2018 indicated that average 30-year note rates on...

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Soar, Could Sink in Next Report

An expected surge in mortgage rates came to fruition this week. The latest forecast has fixed rates tumbling in next week's report. A new index for adjustable-rate mortgages moved lower. A stunning 19-basis-point surge from the preceding week left average 30-year...

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Dip, But Likely to Skyrocket

Mortgage rates retreated a modest amount just one week after climbing to a seven-year high. The next rate report, however, is likely to reflect significant escalation. Prospective 30-year borrowers using the LendingTree network during September were offered an average...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI