Mortgage rate update: Rates rise into the mid 5% range
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.
Conforming rates:
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:
See historical chart of rates since 1971 here
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!
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