Fixed mortgage rates reverse course, show slight uptick


(Photo by Jason Reed/Reuters)

Fixed mortgage rates reversed five weeks of declines with a slight uptick last week, according to the latest data released Thursday by Freddie Mac.

The 30-year fixed-rate average edged up to 4.14 percent with an average 0.5 point. It was 4.12 percent a week ago and 3.91 percent a year ago.

The 15-year fixed-rate average increased to 3.23 percent with an average 0.5 point. It was 3.21 percent a week ago and 3.03 percent a year ago.

Hybrid adjustable rate mortgages continued their decline. The five-year ARM average slid to 2.93 percent with an average 0.4 point. It was 2.96 percent a week ago and 2.74 percent a year ago. The five-year ARM average has remained below 3 percent for the past three weeks.

The one-year ARM average dropped to 2.4 percent with an average 0.4 point. It was 2.41 percent a week ago.

“Mortgage rates were little changed amid a week of light economic reports,” Frank E. Nothaft, Freddie Mac vice president and chief economist, said in a statement.

“Of the few releases, real GDP was revised down to [minus]-1.0 percent growth in the first quarter of 2014. ADP Research Institute estimated the private sector added 179,000 jobs in May, which followed a slight downward revision of 5,000 jobs in April. Meanwhile, the Institute for Supply Management reported the manufacturing industry saw a slight acceleration in monthly growth for May.”

With rates headed up, mortgage applications declined for the second week in a row, according to the latest data from the Mortgage Bankers Association.

The market composite index, a measure of total loan application volume, fell 3.1 percent. The refinance index dropped 3 percent, while the purchase index sank 4 percent.

The refinance share of mortgage activity showed a slight uptick, accounting for 53 percent of all applications.

Kathy Orton is a reporter and Web editor for the Real Estate section. She covers the Washington metropolitan area housing market.

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