Sara Routhier, Managing Editor and Outreach Director, has professional experience as an educator, SEO specialist, and content marketer. She has over five years of experience in the insurance industry. As a researcher, data nerd, writer, and editor she strives to curate educational, enlightening articles that provide you with the must-know facts and best-kept secrets within the overwhelming world o...

Full Bio →

Written by

Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He also has an MBA from the University of South Florida. ...

Full Bio →

Reviewed by Joel Ohman
Founder, CFP®

UPDATED: May 9, 2013

Advertiser Disclosure

Advertiser Disclosure: We strive to help you make confident loan decisions. Comparison shopping should be easy. We are not affiliated with any one loan provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about loans. Our goal is to be an objective, third-party resource for everything loan related. We update our site regularly, and all content is reviewed by experts.

Mortgage interest rates increased and moved away from record lows this week according to rate reports provided by

Mortgage interest rates have finally turned around despite heading in a general downward direction for over a month.

For the week ending May 9, 2013, the 30-year fixed-rate mortgage (FRM) averaged 3.38 percent, an increase from last week’s rate of 3.33 percent.

The 15-year FRM averaged 2.56 percent. This rate is slightly up from last week when it averaged 2.54 percent.

Finally, the 5/1 adjustable-rate mortgage (ARM) interest rate averaged 2.3 percent, an increase from 2.26 percent set last week.

Deborah Bernat, senior associate at Hammond Residential Real Estate, said it is a good time to buy with acquisition financing and because of the low mortgage rates.

“I encourage my clients to think about their long term plans,” Bernat said. “It makes sense for many of my clients to purchase properties that will meet their needs for the next twenty years versus the next ten years.”

The housing market was strengthened by several outside factors, but the main contribution was the strong employment report in April.

According to the Bureau of Labor Statistics, around 165,000 new net jobs were gained by the economy during April. The addition was more than the market consensus forecast and the largest monthly increase during 2013.

Due to revisions, 114,000 more jobs were added to reports for February and March. New jobs and revisions forced the unemployment rate to fall to 7.5 percent in April, making it the lowest rate since December 2008.

Keith Newcomb, portfolio manager for Full Life Financial, said market participants react to trends in employment, inflation expectations and rate expectations, in addition to expected returns that are relative to other investments in the fixed income space.

Newcomb said that typically when stocks are down, bonds are up and interest rates are lower.

“Mortgages are spread products, so they follow,” he said.