Rates Continue to Climb
Rates showed no signs of stopping as they moved upward for the 4th week in a row according to Freddie Mac.
– 30-YR FIXED: Averaged 3.05% with an average 0.6 point. This is up from 3.02% last week but is still down from a year ago when it averaged 3.36%.
– 15-YR FIXED: Averaged 2.38 % with an average 0.6 point. This is up from 2.34% last week but is still down from a year ago when it averaged 2.77%
Sam Khater, Freddie Mac’s Chief Economist, said in a statement, “Homebuyer demand is strong and, for homeowners who have not refinanced but are looking to do so, they have not yet lost the opportunity.”
He’s correct, but that window is rapidly closing. The Mortgage Bankers Association reported on Wednesday that mortgage applications fell slightly from last week. This decrease was lead by a drop-off in refi activity.
- MBA reported that refi applications, “decreased 5 percent from the previous week and was 43 percent lower than the same week one year ago.”
When the economy is hot two things always spike: gas prices and mortgage rates. With projections of 6-7% GDP growth don’t expect rates to fall anytime soon.