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Expect ‘Robust’ Sales This Summer

Mortgage rates remained the same this week, with the average 30-year, fixed rate at 4.55 percent, no different than the prior week, according to Freddie Mac’s recently released Primary Mortgage Market Survey® (PMMS®). The average 15-year, fixed rate came in at 4.01 percent, down from 4.03 percent, but the average five-year, Treasury-indexed hybrid adjustable rate came in at 3.77 percent, up from 3.69 percent.

“The minimal movement of mortgage rates in these last three weeks reflects the current economic nirvana of a tight labor market, solid economic growth and restrained inflation,” says Sam Khater, chief economist at Freddie Mac. “As we head into late spring, the demand for purchase credit remains rock solid, which should set us up for another robust summer home sales season.

“While this year’s higher rates—up 50 basis points from a year ago—have put pressure on the budgets of some home shoppers, weak inventory levels are what’s keeping the housing market from a stronger sales pace,” Khater says.

Source: Freddie Mac

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