The Federal Reserve met and they did not raise the short term bank rate but instead put off their decision to raise rates until June. Now is the time to catch a mortgage rate at the lows of today before they follow the trend that is set by the Feds just a few short weeks away.
Mortgage interest rates did not go up as many expected this past week. Instead they held fairly steady while the 30 year even eased back a bit in the past week. For the week ending May 3, Freddie Mac announced that 30-year fixed rates fell to 4.55% from 4.58% the week before. The average for 15-year loans increased one tick to 4.03% and the average for five-year adjustables moved down to 3.69%. A year ago, 30-year fixed rates averaged 4.02%. Attributed to Sam Khater, Chief Economist, Freddie Mac — “While rates on home loans have increased by one-half of a percentage point so far this year, it has not impacted home purchase demand, which continues to grow this spring. The observed buyer resiliency in the face of higher rates reflects the healthy economy and strong consumer confidence, which are important drivers of home sales activity. It’s also good news that first-time buyers appear to be having more success so far this year – despite higher borrowing costs and home prices. Our data through April show that first-timers represent 46 percent of purchase loans, up from 43 percent over the same period a year ago.”
Note: Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.