US Mortgage Rates Extend Rebound

The average rate on a 30-year fixed mortgage rose by 7bps from the previous week to 6.37% as of May 7th, extending the rebound from the earlier period, according to data compiled by Freddie Mac. The increase tracked a rebound in long-dated Treasury yields during the period as a surge in energy prices placed inflationary risks on the upside, potentially warranting a hawkish Federal Reserve. “Recent data points to slightly better conditions for buyers with a boost in new-home sales, median new-home prices being down to their lowest level since July 2021, and higher inventory than in recent years. Together, these trends could modestly ease affordability pressures through the spring homebuying season.” said Sam Khater, Freddie Mac’s Chief Economist.

The average rate on a 30-year fixed mortgage rose by 7bps from the previous week to 6.30% as of April 30th, the first weekly increase in one month, according to data compiled by Freddie Mac. The increase tracked a rebound in long-dated Treasury yields as a surge in energy prices placed inflationary risks on the upside, potentially warranting a hawkish Federal Reserve. “As rates had modestly declined the last few weeks, purchase demand has accelerated with purchase applications rising to over 20 percent above a year ago. It is clear that purchase demand continues to hold up as prospective buyers react to both modestly lower rates and more inventory to choose from than the last few years." said Sam Khater, Freddie Mac’s Chief Economist.

The average rate on a 30-year fixed mortgage fell by 7bps from the previous week to 6.23% as of April 23rd, a third consecutive decrease since reaching the seven-month high of 6.46%, according to data compiled by the Freddie Mac. The drop loosely tracked the pullback in long-dated Treasury yields as energy prices eased from their peaks in the last week of March. “The 30-year fixed-rate mortgage declined again this week to 6.23%,” said Sam Khater, Freddie Mac’s Chief Economist. “Rates currently stand at their lowest level in the last three spring homebuying seasons. This improvement, coupled with a pickup in purchase applications and refinance activity, as well as an increase in monthly pending home sales, underscores signs of improving momentum in the market.”