Long- And Short-Term Rates Rise on Stronger Than E

The latest Freddie Mac Primary Mortgage Market Survey (PMMS) shows that the 30-year fixed-rate mortgage (FRM) averaged 6.37 percent with an average 0.4 point for the week ending May 24, up from the previous week when it averaged 6.21 percent. Last year at this time, the 30-year FRM averaged 6.62 percent. The 15-year FRM averaged 6.06 percent with an average 0.4 point, up from the previous week when it averaged 5.92 percent. A year ago, the 15-year FRM averaged 6.23 percent. Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.02 percent, with an average 0.5 point, up from the previous week when it averaged 5.92 percent. A year ago, the 5-year ARM averaged 6.21 percent. Frank Nothaft, vice president and chief economist for Freddie Mac, credited the rise in interest rates to stronger-than-expected consumer confidence and recent comments from members of the Federal Reserve that raised inflation concerns in the market, causing it to lower expectations of a Fed rate cut this year. Nothaft expects a gradual rise in mortgage rates over the remainder of the year with sales slipping further in the second half of the year.