Mortgage Loan Interest Rates Experience Growth for Third Week
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UPDATED: May 23, 2013
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Mortgage loan interest rates all increased for the third consecutive week according to rate reports provided by loans.org. The rates have been on a steady upswing since they hovered above historic lows at the beginning of May.
For the week ending May 23, 2013, the 30-year fixed-rate mortgage (FRM) averaged 3.63 percent, a staggering 0.3 percent increase from last week’s rate of 3.33 percent.
The 15-year FRM averaged 2.75 percent. This rate also made a large jump from last week’s average of 2.54 percent.
Finally, the 5/1 adjustable-rate mortgage (ARM) interest rate averaged 2.35 percent, an increase from 2.26 percent set last week.
Frank Nothaft, vice president and chief economist at Freddie Mac, said the increased mortgage loan interest rates may slow the refinance momentum in the housing market.
Despite the threat to refinanced home loans, other areas of housing are still in an overall upswing.
Last month, single family housing permits rose to the strongest pace since May 2008. The U.S. Census reports found that housing permit rates were 1,017,000, a 14.3 percent increase from March’s rate of 890,000.
The National Association of Realtors (NAR) found two separate pieces of data that supported the housing recovery.
First, existing home sales experienced the largest gain since November 2009. The seasonally adjusted annual rate reached 4.97 million in April.
In a released statement, Lawrence Yun, NAR chief economist, said the housing market is solidly recovering in spite of limited access to inventory and credit. Yun predicted that without these limitations, existing home sales would be above the 5-million unit pace.
Secondly, the NAR found that the median number of days that homes stayed on the market dropped from 62 days to a meager 46 days. This finding was the smallest recorded rate since the association began recording that data in May 2011.