Mortgage Rates Up

(RTTNews) - Mortgage rates, or interest rates on home loans, inch up from last week, according to mortgage provider Freddie Mac (FMCC.OB).

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 3.18 percent for the week ending April 1, 2020, slightly up from 3.17 percent last week. A year ago at this time, the average rate was 3.33 percent.

The 15-year FRM this week averaged 2.45 percent, unchanged from last week. A year ago at this time, the 15-year FRM averaged 2.82 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 2.84 percent, unchanged from last week. It was 3.40 percent a year ago.

"Although mortgage rates remain low, we are beginning to see a pullback by those looking to enter the housing market," said Sam Khater, Freddie Mac's Chief Economist. "In fact, homebuyer demand has gone from 25% above pre-COVID levels at the start of the year, when mortgage rates hit record lows, to 8% above pre-COVID levels today."

Khater added, "We even see that purchase demand is diminished today as compared to late May and early June of 2020, when mortgage rates were the same level. This is confirmation that while purchase demand remains strong, the marginal buyer is feeling the affordability squeeze resulting from the increases in mortgage rates and home prices we've experienced in recent months."