Mortgage Rates Are Up Again

Dated: May 21 2018

Views: 343

Long-term U.S. mortgage rates jumped this week, marking their highest levels in seven years amid the peak home buying season.


Image result for graph going up

The benchmark 30-year rate pushed toward the significant 5 percent level. Mortgage buyer Freddie Mac said Thursday the average rate on 30-year, fixed-rate mortgages was 4.61 percent, up from 4.55 percent last week. The new average rate was the highest since May 19, 2011. By contrast, the 30-year rate averaged 4.02 percent a year ago.

The average rate on 15-year, fixed-rate loans climbed to 4.08 percent from 4.01 percent last week.

The latest indications of a strong economy and rising commodity prices — gasoline is at a four-year high — lifted yields on bonds and mortgage rates followed suit.

U.S. retail sales rose at a solid pace in April, according to a government report issued Tuesday, a sign that consumers may be rebounding from weak spending earlier this year and driving stronger economic growth. Consumer spending has rebounded in the past two months after a weak January and February, a trend that could accelerate growth in the April-June quarter.

Despite higher borrowing costs and home prices, demand for home purchases has grown so far in the spring buying season, as the economic outlook has continued to improve and bolstered consumer confidence.


To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week.Still, “inflationary pressures and the prospect of (mortgage) rates approaching 5 percent could begin to hit the psyche of some prospective buyers,” said Freddie Mac chief economist Sam Khater.

The average doesn’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. The fee on 30-year fixed-rate mortgages fell to 0.4 point from 0.5 point last week. The fee for 15-year mortgages was unchanged at 0.4 point.

The average rate for five-year adjustable-rate mortgages jumped to 3.82 percent from 3.77 percent last week. The fee remained at 0.3 percent.



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Denver Colorado Real Estate Professional -Michael Steffen

Michael is a motivated realtor specializing with investors and new home buyers located in the following areas; DenverArvada,Aurora and surrounding areas. Michael Steffen uses advanced internet marketing to insure your property gets maximum exposure and holds a high value of ethics in his work to ensure the ideal scenario for everyone! For help with buying or selling a property call 303-981-2750!

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Generation Property Group

My name is Michael Ross Steffen. I’m an Exit Realty Cherry Creek Agent in the Denver metro area and Team Leader For Generation Property Group! We specialize in advanced Internet marketing, buying, s....

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