Upward Movement in Mortgage Rates for Third Consecutive Week


The average rates of fixed-rate mortgages rise as the 10-year Treasury yields increase for a third week in a row. This is revealed in the Primary Mortgage Market Survey for the week ended May 14th conducted by Freddie Mac.
The average interest rate of a 30-year fixed-rate mortgage moved up from its previous week’s level of 3.80% to 3.85% in the week ended May 14th. It is currently just below its peak level reached so far in 2015. In the same week a year ago, the average rate of this loan was 4.20%.

The 15-year fixed-rate mortgage experienced an average rate increase from 3.02% in the previous week to 3.07%. At this time one year ago, the average rate of this mortgage was 3.29%.

The average rate of a 5-year hybrid adjustable-rate home loan went in the opposite direction, according to Freddie Mac’s data. It declined to 2.89% from 2.90% in the week ended May 7th. During the same week a year earlier, this loan’s average interest rate was 3.01%.

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The 1-year hybrid adjustable-rate loan experienced an average rate increase to 2.48% from 2.46% in the previous week. During the same week of 2014, the average rate of this home loan was 2.43%.

Len Kiefer, deputy chief economist at Freddie Mac, commented that mortgage rates moved up for a third week in a row along with the continued rising of the 10-year Treasury yields. He noted the improvement in the U.S. labor market in April when the economy added 223,000 jobs. This was nearly three times higher than the gain in March when only 85,000 jobs were added. Kiefer also pointed out that the rate of unemployment declined to 5.4% in April while the participation rate rose to 62.8%. The number of jobless claims was lower than anticipated during the month.

Christian

Christian

Christian Calvin mortgage Christian is a contributing writer for Mortgage.info. He is a graduate from the University of Tennessee with a degree in Communications and a concentration in Broadcasting. Christian has served as vice-president for a privately-held company for more than 20 years. Additionally, he has also applied his writing and business knowledge to various websites with a focus on business and sports news . . . both of which are passions. Christian enjoys playing golf and spending time with his family and friends.

Contact: christian@mortgage.info
Christian

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