Mortgage rates were on the decline again, according to the latest Primary Mortgage Market Survey published by Freddie Mac (OTC:FMCC).
The 30-year fixed-rate mortgage averaged 6.27% as of April 13, down from last week when it averaged 6.28%. A year ago at this time, it averaged 5.00%.
The 15-year fixed-rate mortgage averaged 5.54%, down from last week when it averaged 5.64%. A year ago at this time, it averaged 4.17%.
“Mortgage rates decreased for the fifth consecutive week,” said Sam Khater, Freddie Mac’s chief economist. “Incoming data suggest inflation remains well above the desired level but showing signs of deceleration. These trends, coupled with tight labor markets, are creating increased optimism among prospective homebuyers as the housing market hits its peak in the spring and summer.”
Mike Fratantoni, senior vice president and chief economist, noted the current mortgage rates are the “lowest level in two months,” adding that both buyers and homeowners are reacting to this trend.
“Prospective homebuyers this year have been quite sensitive to any drop in mortgage rates, and that played out last week with purchase applications increasing by 8%,” said Fratontoni in announcing the latest mortgage application data compiled by his organization. “Refinance application volume was a mixed bag with total volume essentially flat, conventional volume down for the week, but VA refinance volume increasing. The level of refinance activity remains almost 60% below last year, as most homeowners are currently locked in at much lower rates.”
