Another Mortgage Rate Update

Interest rates continue their upward climb from the last couple weeks. According to Freddie Mac’s official press release last week 30-year fixed-rate mortgages (FRM) averaged 3.91 percent with an average 0.7 point for the week ending June 6, 2013. This is up from last week when it averaged 3.81 percent. Last year at this time, the 30-year FRM averaged 3.67 percent. These rates are still absolutely phenomenal but as rates rise the purchasing power of buyers does decrease.

Also, the 15-year FRM this week averaged 3.03 percent with an average 0.7 point, up from last week when it averaged 2.98 percent. A year ago at this time, the 15-year FRM averaged 2.94 percent. For those looking at other products the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.74 percent this week with an average 0.5 point, up from last week when it averaged 2.66 percent. A year ago, the 5-year ARM averaged 2.84 percent.

Look for this trend of rising interest rates to continue, albeit likely at a little slower pace. However, in the next year and a half when we hit early 2015 the forecast is for rates to return to the 6% mark.

Stephen Woodall

REALTOR, GRI @ Long Realty Company

Stephen has made real estate his full-time career and passion since 2008, primarily specializing in the Foothills & the Northwest Tucson areas of Oro Valley and Marana. He is a multi-million dollar producer, representing both sellers & buyers. Stephen has tremendous experience in new home sales, listing & selling primary residences, listing & selling vacant land, listing & selling luxury homes, investment properties, rentals, and real estate development parcels.