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Rising mortgage rates should not stall the housing recovery, according to Freddie Mac’s latest U.S. Economic and Housing Market Outlook.

After steady rises the last few weeks, the 30-year fixed-rate mortgage (most popular with home buyers) is expected to remain around 4 percent during the second half of 2013.

Despite the rising rates, housing still remains affordable. According to Freddie Mac economists, it would take interest rates rising closer to 7 percent before families earning median incomes would face housing affordability issues.

“The recent upturn in interest rates is sparking fears among some that the economic and housing recoveries will be choked off before they produce sustained growth,” says Frank Nothaft, Freddie Mac’s chief economist. “Nothing in the recent trends suggests that we need to fear a major slowdown. A gradual rise in interest rates will not derail the recovery, and are an indication that the overall economic situation is improving.”

Source: Freddie Mac and “Don’t fear rising mortgage rates just yet: Freddie Mac,” HousingWire (June 18, 2013)

For the sixth consecutive week, mortgage rates inched higher, continuing to climb from all-time lows, Freddie Mac reports in its weekly mortgage market survey. The 30-year fixed-rate mortgage—the most popular among home buyers—has now climbed a half percentage point since last month.

A strengthening economy and positive employment report this month prompted fixed-rate mortgages to climb higher this week, says Frank Nothaft, Freddie Mac’s chief economist.

Freddie Mac reports the following national averages with mortgage rates for the week ending June 13:

• 30-year fixed-rate mortgages averaged 3.98 percent, with an average 0.7 point, rising from last week’s 3.91 percent average. A year ago at this time, 30-year rates averaged 3.71 percent.
• 15-year fixed-rate mortgages averaged 3.10 percent this week, with an average 0.7 point, increasing from last week’s 3.03 percent average. Last year at this time, 15-year rates averaged 2.98 percent.
• 5-year adjustable-rate mortgages averaged 2.79 percent, with an average 0.6 point, rising from last week’s 2.74 percent average. Last year at this time, 5-year ARMs averaged 2.80 percent.

Source: Freddie Mac

For the fifth consecutive week, mortgage rates continued to rise, as the economy showed signs of strengthening. Concerns are growing that the Federal Reserve will soon slow its bond purchase program, which has been keeping rates near record lows for months, Freddie Mac reports in its weekly mortgage market survey.

For the first time since May of last year, the 15-year fixed-rate mortgage rose above 3 percent this week. Freddie Mac reports the following national averages with mortgage rates for the week ending June 6:

• 30-year fixed-rate mortgages averaged 3.91 percent, with an average 0.7 point, increasing from last week’s 3.81 percent average. A year ago at this time, 30-year rates averaged 3.67 percent.
• 15-year fixed-rate mortgages averaged 3.03 percent, with an average 0.7 point, rising from last week’s 2.98 percent average. Last year at this time, 15-year rates averaged 2.94 percent.
• 5-year adjustable-rate mortgages averaged 2.74 percent, with an average 0.5 point, rising from last week’s 2.66 percent average. Last year at this time, 5-year ARMs averaged 2.84 percent.

Source: Freddie Mac

Mortgage applications for home purchases and refinancing continued to fall, dropping 11.5 percent last week, amid rising mortgage rates. Interest rates rose above 4 percent for the first time in a year, according to the Mortgage Bankers Association.

Applications for refinancings saw the largest declines, with applications falling 15 percent last week, the MBA reports. Meanwhile, applications for home purchases, an indicator for future home sales, fell 1.6 percent last week.

Many analysts blame the decreasing applications on rising mortgage rates. The fixed 30-year mortgage rate averaged 4.07 percent for the week ending May 31, its highest level since April 2012, the MBA reports. Fed chairman Ben Bernanke recently indicated that the Fed may soon scale back its bond purchase program, which has helped to keep mortgage rates near all-time record lows.

Source: “Mortgage applications drop as rates surge: MBA,” Reuters (June 5, 2013)

“Fixed mortgage rates followed long-term government bond yields higher, following a growing market sentiment that the Federal Reserve may lessen its accommodative policy stance,” says Frank Nothaft, Freddie Mac’s chief economist. “Improving economic data may have encouraged those views.”

However, mortgage rates remain low by historical standards, Freddie Mac reports.

The mortgage giant reports the following national averages with mortgage rates for the week ending May 30:

• 30-year fixed-rate mortgages: averaged 3.81 percent, with an average 0.8 point, rising from last week’s 3.59 percent average. A year ago at this time, 30-year rates averaged 3.75 percent.
• 15-year fixed-rate mortgages: averaged 2.98 percent, with an average 0.7 point, rising from last week’s 2.77 percent average. Last year at this time, 15-year rates averaged 2.97 percent.
• 5-year adjustable-rate mortgages: averaged 2.66 percent, with an average 0.5 point, also up from last week’s average of 2.63 percent. Last year at this time, 5-year ARMs averaged 2.84 percent.

Source: Freddie Mac

Mortgage rates continued to inch higher this week, Freddie Mac reports in its weekly mortgage market survey.

“Fixed-rates moved up for the third consecutive week, with the average 30-year fixed-rate mortgage about a quarter-percentage point higher than three weeks ago,” says Frank Nothaft, Freddie Mac’s chief economist. “While this may slow some of the refinance momentum, rates are nonetheless low and home-buyer affordability high, which should further aid home sales and construction in coming weeks.”

The rates are also lower today than they were a year ago at this time. Freddie Mac reports the following national averages with mortgages rates for the week ending May 23:

• 30-year fixed-rate mortgages: averaged 3.59 percent this week, with an average 0.7 point, rising from last week’s 3.51 percent average. A year ago at this time, 30-year rates averaged 3.78 percent.
• 15-year fixed-rate mortgage: averaged 2.77 percent, with an average 0.7 point, increasing from last week’s 2.69 percent average. Last year at this time, 15-year rates averaged 3.04 percent.
• 5-year adjustable-rate mortgages: averaged 2.63 percent, with an average 0.5 point, rising from last week’s 2.62 percent average. Last year at this time, 5-year ARMs averaged 2.83 percent.

Source: Freddie Mac

The housing market is heating up, yet many house hunters are not prepared to take on the biggest purchases of their lives.

When it comes to mortgages, home buyers answered basic questions about terms, how to choose a lender and financing wrong nearly one-third of the time, according to an April survey of more than 1,000 current and prospective homeowners by real estate website Zillow.

Among the survey’s findings, 31% of buyers don’t think it’s possible to get a mortgage for less than 5% down; 34% don’t know what the term “annual percentage rate” (APR) means and one in four believe you must close with the lender that pre-approves your mortgage.

“All too often buyers focus on negotiating a lower home price and ignore the importance of finding the right loan,” said Erin Lantz, director of mortgages for Zillow. “Buyers should always shop multiple lenders and compare rates and fees and read lender reviews in order to find the best loan for their situation.”

Source: http://money.cnn.com/2013/05/09/real_estate/homebuyers-mortgages/index.html?hpt=hp_t2

Fixed-rate mortgages climbed this week after signs of stronger consumer spending, Freddie Mac reports in its weekly mortgage market survey.

Here are the national averages for mortgage rates for the week ending May 16:

• 30-year fixed-rate mortgages averaged 3.51 percent, with an average 0.7 point, increasing from last week’s 3.42 percent average. A year ago at this time, 30-year rates averaged 3.79 percent.
• 15-year fixed-rate mortgages averaged 2.69 percent, with an average 0.7 point, rising from last week’s 2.61 percent average. Last year at this time, 15-year rates averaged 3.04 percent.
• 5-year adjustable-rate mortgages averaged 2.62 percent, with an average 0.5 point, rising from last week’s 2.58 percent average. Last year at this time, 5-year ARMs averaged 2.83 percent.

Source: Freddie Mac

For the first time in six weeks, fixed-rate mortgages reversed course and climbed higher this week, Freddie Mac reports in its weekly market survey.

“Fixed mortgage rates edged up following a solid employment report for April,” says Frank Nothaft, Freddie Mac’s chief economist. “The economy gained 165,000 new jobs on net last month, more than the market consensus forecast and the largest monthly increase this year.”

Freddie Mac reports the following national averages with mortgage rates for the week ending May 9:

• 30-year fixed-rate mortgages: averaged 3.42 percent, with an average 0.7 point, rising from last week’s 3.35 percent average. A year ago at this time, 30-year rates averaged 3.83 percent.
• 15-year fixed-rate mortgages: averaged 2.61 percent, with an average 0.7 point, rising from last week’s 2.56 percent average. Last year at this time, 15-year rates averaged 3.05 percent.
• 5-year adjustable-rate mortgages: averaged 2.58 percent this week, with an average 0.5 point, climbing from last week’s 2.56 percent average. Last year at this time, 5-year ARMs averaged 2.81 percent.

Source: Freddie Mac

Fixed-rate mortgages pushed lower for the fifth-consecutive week, with low mortgage rates further driving the housing recovery over the near term, says Frank Nothaft, Freddie Mac’s chief economist.

This week, the 30-year fixed-rate mortgage hovered near its all-time record low, while 15-year rates set a new record.

Freddie Mac reports the following national averages with mortgage rates for the week ending May 2, 2013:

• 30-year fixed-rate mortgages: averaged 3.35 percent, with an average 0.7 point, just shy of its 3.31 percent record set during the week of Nov. 21, 2012. A year ago at this time, 30-year rates averaged 3.84 percent.
• 15-year fixed-rate mortgages: sank to an all-time record low of 2.56 percent, with an average 0.7 point, dropping from last week’s previous record of 2.61 percent. Last year at this time, 15-year rates averaged 3.07 percent.
• 5-year adjustable-rate mortgages: averaged 2.56 percent, with an average 0.5 point, dropping from last week’s 2.58 percent average. Last year at this time, 5-year ARMs averaged 2.85 percent.

Source: Freddie Mac