ABBA First Mortgage News

Rates went up last week and then trended down this past week

Rates rose again in the past week, though they started easing towards the end of the survey period. For the week ending May 24, Freddie Mac announced that 30-year fixed rates increased to 4.66% from 4.61% the week before. The average for 15-year loans rose to 4.15% and the average for five-year adjustables was up to 3.87%. A year ago, 30-year fixed rates averaged 3.95%. Attributed to Sam Khater, Chief Economist, Freddie Mac — “Rates on home loans so far in 2018 have had the most sustained increase to start the year in over 40 years. Through May, rates have risen in 15 out of the first 21 weeks (71 percent), which is the highest share since Freddie Mac began tracking this data for a full year in 1972. At a time when housing inventory remains extremely low, it’s worth watching whether these higher borrowing costs lead some would-be sellers to stay put in their current home. Inventory shortages would likely worsen if more homeowners decide not to sell out of reluctance of having a new home loan with a higher rate.”  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.

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