Mortgage rates increased for the third week in a row, creating a new upward trend away from the historical lows witnessed this year, Freddie Mac’s Primary Mortgage Market Survey found.
However, average fixed mortgage rates are still near three-year lows.
Recent statements by the Fed appear to have persuaded the market that a rate hike may come sooner than later. However, U.S. stock futures, Treasury yields and the dollar fell Friday 3rd June 2016 after the U.S. jobs report showed U.S. companies slowed their hiring drastically in May, throwing the possibility of a Fed rate increase in the next few months into question. So there is a possibility for the mortgage rates to remain at this level or decrease further!
The 30-year fixed-rate mortgage averaged 3.66% for the week ending June 2, 2016, up from last week when it averaged 3.64%. A year ago at this time, the 30-year FRM averaged 3.87%.
Similarly, the 15-year FRM this week averaged 2.92%, increasing from last week when it averaged 2.89%. In 2015, the 15-year FRM averaged 3.08%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.88% this week, growing slightly from last week’s average of 2.87%. A year ago, the 5-year ARM averaged 2.96%.