April 5During the first week of the month, the average rate on a 30-year fixed rate mortgage (FRM) slipped down to 3.98 percent, excluding fees, from 3.99 percent the week before. The average rate on a 15-year FRM dropped to 3.21 percent from 3.23 percent and the one-year adjustable rate mortgage (ARM) was unchanged at 2.78 percent.
April 12The next week, rates took a dramatic dive, with the 30-year FRM average plunging to 3.88 percent and the 15-year rate falling to 3.11 percent, a new all-time record low. The one-year ARM inched up to 2.80 percent however. Freddie Mac vice president and chief economist Frank Nothaft blamed "a weaker than expected employment report for March" for the drop in rates.
April 19Rates moved up slightly in the third week "amid signs that inflation remains in check," said Nothaft. The average rate on a 30-year FRM rose to 3.90 percent and the 15-year FRM increased to 3.13 percent. The one-year ARM also rose slightly to 2.81 percent.
April 26At the end of the month the 30-year FRM headed back down to an average of 3.88 percent, with the 15-year FRM slipped down to 3.12 percent. The one-year ARM average fell to 2.74 percent.
Fixed mortgage rates held near record lows this week as the markets waited for the Federal Reserve's April 25 monetary policy announcement following two days of deliberations. The Fed stated that it expects economic growth to remain moderate and then pick up gradually.
What's Next for Interest Rates?The Federal Reserve recently announced upwardly revised expectations for 2012 GDP and unemployment rate improvement. With these and many other signs of at least some economic growth, there is room for interest rates to move slightly higher in May. The 30-year fixed is not likely to go much higher than 4.10 percent, but it could plausibly move about 4 percent during the month.
If you are in the market for a new lake home please contact the Spouses Selling Houses team. Until next time. Ebbie :)