Freddie Mac rates were about the same as of May 14 as they were on May 7. Rates continue to hover a little above historic lows. A few months ago this would have brought another wave of homebuyers into the market for the spring season. However, with unemployment rates at levels consistent with deep recessionary conditions, only the most qualified buyers with secure employment are going to benefit from the increased affordability.
The 30-year fixed rate was up 2 basis points to 3.28% as of May 14, not materially different from the series low of 3.26% in the prior week. The two-week average for May is 3.27%, also bordering on historic lows and a scan 4 basis points below the 3.31% in April.
The 15-year fixed rate was down 1 basis point to 2.72% as of May 14, essentially unchanged from the prior week. The average for May to-date is 2.73%, down 7 basis points from the prior month.
The 5/1-year ARM rate was up 1 basis point to 3.18%, little different from the prior week. The average of 3.18% for the first two weeks of May was down 14 basis points from 3.31% in April when risks to the outlook and market volatility were more elevated.
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