Homes.com is excited to announce that activity in the nation’s housing market continues to increase, indicating that we are well on the road to recovery from the housing bubble burst. Unfortunately, national mortgage rates are increasing as well. According to the latest Freddie Mac Primary Mortgage Market Survey (PMMS), mortgage rates are moving back up near their highs of the year. Furthermore, 30 year fixed mortgage rates are now only one basis point lower than the highest point this year which is 4.58%.
What’s causing this increase? In recent weeks there has been a strong economic recovery and as we mentioned before, better news from housing and manufacturing sectors of the market. On the other hand, rate increases are expected to remain static in the upcoming days as news of weaker than expected employment was released. Additionally, the market has seen continued instability as investors are anticipating the Fed to taper their bond purchase programs that have played a role in keeping these rates down.
Here are some highlights from the Freddie Mac report:
- 1-year ARM averaged 2.71 percent this week with an average 0.5 point, up from last week when it averaged 2.64 percent. At this time last year, the 1-year ARM averaged 2.61 percent.
- 15-year FRM this week averaged 3.59 percent with an average 0.7 point, up from last week when it averaged 3.54 percent. A year ago at this time, the 15-year FRM averaged 2.86 percent.
- 30-year fixed-rate mortgage (FRM) averaged 4.57 percent with an average 0.7 point for the week ending September 5, 2013, up from last week when it averaged 4.51 percent. A year ago at this time, the 30-year FRM averaged 3.55 percent.
- 5-year adjustable-rate mortgage (ARM) averaged 3.28 percent this week with an average 0.5 point, up from last week when it averaged 3.24 percent. A year ago, the 5-year ARM averaged 2.75 percent.
If your clients are considering refinancing or buying a new home, you may want to advise them that it’s not a good time to play the market. Keep a lookout on market conditions in the upcoming days or weeks, it would be beneficial for your clients to move on a rate when the market improves.
Are you seeing interest decline due to rising rates? Tell us about your area’s conditions by commenting below or share with us on Facebook. For even more mortgage related news like this, check out all the articles from Homes.com featured author Shashank Shekhar. Furthermore, try out the Homes.com Mortgage Calculator to see how further increases may affect you.