Wondering about mortgage rates or looking for a real estate update? On Thursday, May 30, 2024, Freddie Mac released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 7.03 percent, up from last week when it averaged 6.94 percent. A year ago at this time, the 30-year FRM averaged 6.79 percent.
The 15-year fixed-rate mortgage averaged 6.36 percent, up from last week when it averaged 6.24 percent. A year ago at this time, the 15-year FRM averaged 6.18 percent.
“Following several weeks of decline, mortgage rates changed course this week,” said Sam Khater, Freddie Mac’s Chief Economist. “More hawkish commentary about inflation and tepid demand for longer-dated Treasury auctions caused market yields to rise across the board. This reality, as well as economic signals that have moved sideways over the last few weeks, have resulted in mortgage rates drifting higher as markets continue to dial back expectations of interest rate cuts.”
According to the Mortgage Bankers Association (MBA), mortgage applications decreased 5.7 percent from one week earlier. The Refinance Index decreased 14 percent from the previous week and was 12 percent higher than the same week one year ago. The unadjusted Purchase Index decreased 3 percent compared with the previous week and was 10 percent lower than the same week one year ago.
“Mortgage rates increased for the first time in four weeks, with the 30-year fixed rate up to 7.05 percent and all other loan types also seeing increases. The uptick in rates led to a decline in mortgage applications heading into Memorial Day weekend,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist. “Both purchase and refinance applications fell, pushing overall activity to the lowest level since early March. Borrowers remain sensitive to small increases in rates, impacting the refinance market and keeping purchase applications below last year’s levels. There continues to be limited levels of existing homes for sale and many buyers are struggling to find listings in their price range that meet their needs.”
More housing and market news
According to MBA’s Purchase Application Payment Index (PAPI), homebuyer affordability declined in April, with the national median payment applied for by purchase applicants increasing to $2,256 from $2,201 in March.
“Homebuyer affordability conditions declined further as mortgage rates remained above 7 percent in April, sidelining many prospective buyers from entering the housing market,” said Edward Seiler, MBA’s Associate Vice President, Housing Economics, and Executive Director, Research Institute for Housing America. “In addition to lower mortgage rates, more housing inventory is desperately needed in markets throughout the country this summer to alleviate these tough affordability conditions.”
Additional mortgage activity
- The refinance share of mortgage activity decreased to 31.3 percent of total applications from 34 percent the previous week.
- The adjustable-rate mortgage (ARM) share of activity decreased to 6.4 percent of total applications.
- The FHA share of total applications decreased to 12.7 percent from 12.8 percent the week prior.
- The VA share of total applications decreased to 12 percent from 13.7 percent the week prior.
- The USDA share of total applications increased to 0.4 percent from 0.3 percent the week prior.
This week in mortgage rates
Wondering about mortgage rates or looking for a real estate update? Rates move up. Here’s how average fixed rates broke down:
- 30-year fixed-rate loans: 7.03% (up from 6.94%)
- 15-year fixed-rate loans: 6.36% (up from 6.24%)
Check back next week for the most up-to-date mortgage and housing news. Or contact Brian Woltman, Branch Manager for Embrace Home Loans in Basking Ridge, NJ at 908-295-4891.
