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As Mortgage Rates Dip Slightly, Waiting for Other Shoe to Drop

As Mortgage Rates Dip Slightly, Waiting for Other Shoe to Drop

Shoe falls into water - waiting for other shoe to drop

lucafabbian/iStock

Despite the widely held expectation that mortgage rates will go up sometime this year, we’re still waiting for the other shoe to drop. The average rates are actually down slightly this week, a good thing for buyers in this busy spring home-buying season.

A 30-year fixed-rate mortgage averaged 3.65% for the week ending April 23, Freddie Mac reported, down from 3.67% last week. One year ago, the 30-year FRM was an average 4.33%.

Freddie Mac also released its updated Multi-Indicator Market Index, which tracks the top 100 metro housing markets across the country.

“The good news is after a slight stumble last month, nearly 60% of all markets are improving,” said Len Kiefer, deputy chief economist at Freddie Mac. “Also, of the top 100 metro areas, over 60 are showing purchase applications up from the same time last year, with over 20 of those metro areas showing double-digit percentage increases.

“Reinforcing this positive momentum, existing-home sales surged 6.1% to a seasonally adjusted annual rate of 5.19 million units in March, the highest annual rate since September 2013,” Kiefer added.

The Mortgage Bankers Association also reported that as of April 17, mortgage applications had increased for the fourth time in five weeks.

More mortgage rates

  • 15-year FRM this week averaged 2.92% with an average 0.6 point, down from last week when it averaged 2.94%. A year ago at this time, the 15-year FRM averaged 3.39%.
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.84% this week with an average 0.4 point, down from last week when it averaged 2.88%. A year ago, the 5-year ARM averaged 3.03%.
  • 1-year Treasury-indexed ARM averaged 2.44% this week with an average 0.4 point, down from last week when it averaged 2.46%. At this time last year, the 1-year ARM averaged 2.44%.

These figures come from Freddie Mac’s Primary Mortgage Market Survey. Borrowers may still pay closing costs, which are not included in the survey.

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