Long-term mortgage rates ended the week mixed, with the 30-year fixed-rate average rising, as markets reacted to news of higher inflation.
The average rate on 30-year fixed-rate loans edged up to 6.06 percent from last week’s 6.03 percent, while the average rate on 15-year fixed loans dipped from 5.62 percent to 5.59 percent. A year ago the 30-year averaged 6.16 percent and the 15-year averaged 5.87 percent.
To qualify for these rates, borrowers must pay points, or fees that lenders charge for loan processing expressed as a percent of the loan, which this week averaged 0.5 on the 30- and 15-year loans.
"This week saw little change in mortgage rates on mixed news of higher inflation and a weaker housing market," Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement.
"Additionally, in its most recent policy committee statement on April 30, the Federal Reserve (Fed) indicated it expects inflation to moderate in coming quarters, but uncertainty about the outlook for inflation remains high. However, the Fed did note that financial markets remain under considerable stress and tight credit conditions, along with the deepening housing contraction, are likely to weigh on economic growth."
Inflation jitters pushed the five-year Treasury-indexed adjustable-rate mortgage (ARM) up to an average 5.73 percent this week from 5.68 percent a week ago. The average rate on one-year Treasury-indexed ARMs, however, held steady at 5.29 percent. Points paid on the five- and one-year loans averaged 0.5 and 0.6, respectively.
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