For the third week in a row, the average long term mortgage rates within the United States are up. According to Freddie Mac, the average rate for a 30 year fixed rate mortgage has risen from 3.80% to 3.85% within a week. Additionally, the rate for a 15 year fixed rate mortgage rose within the week from 3.02% to 3.07%. This is the highest that interest rates have been since the middle of March.
Current rates still remain low as compared to historic standards, given that last year, the rate for a 30 year mortgage was 4.20%, and a 15 year mortgage was 3.29%. Along with the yield on 10 year Treasury notes, long term mortgage rates have also risen. Since the middle of April, this has been an increase from just below 1.90% to 2.24%. The increase in the rates shows a reflection of minor improvements within the economy of the United States as a whole. A portion of the economic improvements are due to the tumbling of unemployment rates that decreased to 5.40%, which is the lowest that it has been since May of 2008. This translates into the economy of the Nation adding upwards of 223,000 jobs within the month of April, which is more than a solid rebound from March’s job gain of 85,000. Also, within the month of April, the claims of joblessness dipped far less than predicted, while the Labor Force Participation Rate increased to an impressive 62.8%.
Last week, Freddie Mac surveyed lenders across the country to properly calculate the mortgage rate averages. On average, the fee for either a 15 or 30 year mortgage remain unchanged from the previous week. The average for an adjustable rate mortgage of five years has slipped from 2.90% to 2.89%. The fee for this mortgage rate was previously 0.50% of a point which has increased from last week’s 0.40% of a point. Additionally, the rate of a single year ARM has been on average of 2.48%, which is an increase from the previous week’s 2.46%. The fee has remained unaltered at 0.40% of a point.
In addition to Freddie Mac’s findings, the National Association of Realtors found that the sales of existing homes in the month of March increased to 1.1%, increasing the median price nationwide. The median pricing is up 7.8% from last year in accordance to the latest report from the association.
As the nation’s economy continues to recover, experts will remain diligent as they watch the real estate market and mortgage industry gain strength.
