After April Hikes, Mortgage Rates Slide in May
After mortgage rates rose for most of April, they dropped slightly in the kickoff to May. The 30-year fixed-rate mortgage dropped three basis points to average 4.55 percent.
“While mortgage rates 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,” says Sam Khater, Freddie Mac’s chief economist. “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 shows that first-timers represent 46 percent of purchase loans, up from 43 percent over the same period a year ago.”
Freddie Mac reports the following national averages with mortgage rates for the week ending May 3:
- 30-year fixed-rate mortgages: averaged 4.55 percent, with an average 0.5 point, dropping from last week’s 4.58 percent average. Last year at this time, 30-year rates averaged 4.02 percent.
- 15-year fixed-rate mortgages: averaged 4.03 percent, with an average 0.4 point, rising from last week’s 4.02 percent average. A year ago, 15-year rates averaged 3.27 percent.
- 5-year hybrid adjustable-rate mortgages: averaged 3.69 percent, with an average 0.3 point, dropping from last week’s 3.74 percent average. A year ago, 5-year ARMs averaged 3.13 percent.
Source: Freddie Mac