[1]In their Mortgage Market Survey (PMMS [2]), Freddie Mac [3] found that mortgage rates inched to the highest levels seen in nearly a month for the week ending May 7, 2015. Len Kiefer, deputy chief economist at Freddie Mac, attributes the rise in part to a selloff in German bonds that drove U.S. Treasury yields above 2.2 percent.
Kiefer also noted that, "the U.S. trade deficit [4] reached $51.4 billion in March to the highest level since 2008. Also, the Institute for Supply Management's manufacturing index was unchanged in April, but manufacturing employment contracted as the index [5] fell below 50 for the first time since May 2013.”
Key Facts of the PMMS Survey include:
The 30-year fixed-rate mortgage [6] (FRM) averaged 3.80 percent with an average 0.6 point for the week ending May 7, 2015, up from last week when it averaged 3.68 percent.
The 15-year FRM [7] averaged 3.02 percent with an average 0.6 point, up from last week when it averaged 2.94 percent. A year ago at this time, the 15-year FRM averaged 3.32 percent.
The five-year Treasury-indexed hybrid adjustable-rate mortgage [8] (ARM) averaged 2.90 percent this week with an average 0.4 point, up from last week when it averaged 2.85 percent. A year ago, the five-year ARM averaged 3.05 percent.
The one-year Treasury-indexed ARM [9] averaged 2.46 percent this week with an average 0.4 point, down from last week when it averaged 2.49 percent. At this time last year, the 1-year ARM averaged 2.43 percent.
Freddie Mac notes that their survey does not account for borrower closing costs. The last time the PMMS survey found mortgage rates at this high of a level was the week ending March 12.
To learn more about the PMMS Survey, or follow other Freddie Mac Research and Analysis, visit: FreddieMac.com/blog/ or @FreddieMac.