“Fixed mortgage rates eased a bit for the fifth consecutive week as reports that existing home sales are up 1.3 percent but not as much as expected,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “However, new home sales rose 6.4 percent in April to a seasonally adjusted annual rate of 433,000, which followed an upward revision of 11,000 units for the prior two months.
“Also, as the spring home buying season continues, we see stronger consumer confidence as house prices remain on the rise,” Nothaft added. “The Conference Board reported that confidence among consumers rose in May after dipping in April. Meanwhile, the S&P/Case-Shiller 20-city composite index rose 0.9 percent in March, above the consensus forecast.”
The 30-year fixed-rate mortgage averaged 4.12% this week, down from last week’s average of 4.14%. A year ago at this time, the 30-year FRM averaged 3.81%.
The average rate for 15-year FRMs fell to 3.21% from last week’s 3.25%. Last year, the 15-year FRM averaged 2.98%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage held steady this week at 2.96%. Last year, the 5-year ARM averaged 2.66%.
The 1-year ARM dropped to an average of 2.41% this week from last week’s 2.43%. A year ago, the 1-year ARM averaged 2.54%.
Fixed mortgage rates continued to fall lower this week, according to data released Thursday by Freddie Mac.