For the first time in a long time, mortgage rates were higher this week than they were a year ago.
Rates on 30-year fixed-rate mortgages averaged 3.81 percent with an average point of 0.8 percent for the week ending May 30, up from 3.59 percent last week and 3.75 percent a year ago, according to Freddie Mac’s latest Primary Mortgage Market Survey.
Rates on 15-year fixed-rate mortgages and five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans also increased, while rates on one-year Treasury-indexed ARMs dropped marginally.
“Fixed mortgage rates followed long-term government bond yields higher following a growing market sentiment that the Federal Reserve may lessen its accommodative policy stance. Improving economic data may have encouraged those views,” Freddie Mac said in a statement.
“For instance, the Conference Board reported that confidence among consumers rose in May to its highest level since February 2008. Meanwhile, the S&P/Case-Shiller 20-city composite home price index for March rose to its highest reading since November 2008 (seasonally adjusted). All 20 cities had positive monthly gains, led by a 3.2 percent increase in Las Vegas.” Source: Freddie Mac