Freddie Mac, the Mortgage Brokers Association (MBA) and HSH Market Trends reported that mortgage interest rates generally declined in their most recent surveys.
On May 29th, Freddie Mac reported that 30-year fixed-rate mortgages fell to 4.12% from 4.14% the previous week. They also noted that last year at this time the 30-year rate was at 3.81%. Frank Nothaft, vice president and chief economist of Freddie Mac noted that: "Fixed mortgage rates eased a bit for the fifth consecutive week as reports that existing home sales are up 1.3 percent but not as much as expected. However, new home sales rose 6.4 percent in April to a seasonally adjusted annual rate of 433,000, which followed an upward revision of 11,000 units for the prior two months".
Stronger consumer confidence was also noted as the spring home buying season continues and house prices remain on the rise. The Conference Board reported that confidence among consumers rose in May after dipping in April. Meanwhile, the S&P/Case-Shiller 20-city composite index rose 0.9 percent in March, above the consensus forecast.
The Mortgage Bankers Association (MBA) reported on May 28th (for the week ending May 23rd) that 30-year rates with conforming loan balances ($417,500 or less) fell to 4.31% from 4.33%. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) declined from 4.24% to 4.23%. Rates for FHA backed mortgages also fell, from 4.06% to 4.04%. These declines brought the rates for all three products to their lowest levels since June of 2013.
On May 30th, HSH Market Trends reported that 30-year mortgage rates dropped to 4.18% (the lowest point since the spring of 2013) from 4.20% the previous week. Rates for FHA-backed mortgages also fell, from 3.95% to 3.91%, the lowest level in approximately six months.
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