For previous mortgage rate updates (which include graphs of the rates over time) see the following mortgage update posts from May 8, 2009 or April 24, 2009 or April 17, 2009 or see this post about jumbo rates for more about larger loans.
Some analysis of the rising rates from the Freddie Mac weekly mortgage rate survey press release:Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year fixed-rate mortgage (FRM) averaged 5.29 percent with an average 0.7 point for the week ending June 4, 2009, up from last week when it averaged 4.91 percent. Last year at this time, the 30-year FRM averaged 6.09 percent.
"30-year fixed-rate mortgage rates caught up to the recent rise in long-term bond yields this week to reach a 25-week high," said Frank Nothaft, Freddie Mac vice president and chief economist." And the slowdown in the housing market has now detracted from economic growth for the past 13 quarters, the longest quarterly stretch since at least 1947, according to the Bureau of Economic Analysis. In the first quarter of 2009 alone, residential fixed investment shaved 1.4 percentage points off of real GDP growth, the most since third quarter of 2006.
"Yet, there are signs that the housing market may be moderating. Housing affordability rose in April to the second highest reading since January 1971 when records began, according the National Association of Realtors® (NAR). As a result, pending existing home sales rose for the third consecutive month by 6.7 percent in April and represented the largest monthly increase since October 2001. Three of the four regions experienced increases, led by a 33 percent jump in the Northeast, the NAR reported."
Here's a chart of the latest average mortgage rates this week by region:
Jumbo mortgage rates:
Here's a graph of jumbo rates over the past year from bankrate.com. The current rate average sits at 6.68%:
We'll see what the bond market brings in the next few weeks and also if there will be any further government actions to try to keep mortgage rates low or push them back down a bit. However, since the rates are completely market driven, there is only so much the government can do. Mortgage rates in the 4%'s may be gone at this point but I'll try to keep you updated!
Do you have questions? What are your thoughts? Comment below!
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