Friday Rate Update

Mortgage Rates Hold Steady Amid Positive Economic News

Freddie Mac reported on May 19 that the average 30-year fixed-rate mortgage rose to 3.58 percent from 3.57 percent a week ago, while the average 15-year fixed-rate mortgage held steady at 2.81 percent and the average five-year adjustable-rate mortgage climbed to 2.8 percent from 2.78 percent a week ago. Last year, rates averaged 3.84 percent for 30-year fixed-rate mortgages, 3.05 percent for 15-year fixed-rate mortgages, and 2.88 percent for five-year adjustable-rate mortgages. "The 10-year Treasury yield saw minimal movement over the past week, despite encouraging news from April's consumer spending and [consumer-price index] data," said Freddie Mac chief economist Sean Becketti. "Although there was minimal change in rates this week, the hawkish tone of ... [the Federal Reserve's] minutes release had an immediate impact on Treasury yields and could possibly shake up next week's survey results." The minutes from the Fed's April meeting, released May 18, left open the possibility of a rate increase in June.

From "Mortgage Rates Hold Steady Amid Positive Economic News"
Washington Post (05/19/16) Orton, Kathy