Mortgage rates slipped slightly over the week ending May 3 after steadily increasing in most of April, according to the Primary Mortgage Market Survey released by Freddie Mac.
Rates for the 30-year fixed-rate mortgage averaged 4.55%, with an average 0.5 point, slipping from the 4.58% average in the previous survey. The latest average marks a year-over-year increase from the 4.02% average in the same week in 2017.
The 15-year fixed-rate mortgage averaged 4.03%, with an average 0.4 point, up from 4.02%. A year ago at this time, the mortgage averaged 3.27%.
The average rate for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) declined to 3.69%, with an average 0.3 point, down from its previous average rate of 3.74%. The 5-year ARM averaged 3.13% in the same period last year.
“While mortgage rates have increased by one-half of a percentage point so far this year, it has not impacted home purchase demand, which continues to grow this spring,” Freddie Mac Chief Economist Sam Khater said. “The observed buyer resiliency in the face of higher rates reflects the healthy economy and strong consumer confidence, which are important drivers of home sales activity.”
Khater also said that the increases in borrowing costs and home prices have not stopped first-time buyers from purchasing homes. Freddie Mac data through April showed that first-timers accounted for 46% of purchase loans, compared to 43% over the same period in 2017.