By Florida Realtors

Freddie Mac economist: Continued improvement in consumer spending and optimism over an expected Fed cut of short-term interest rates helped spark the increase.  

MCLEAN, Va. – After three weeks of holding fairly steady, average mortgage rates ticked up this week, according to Freddie Mac’s weekly report.

“Mortgage rates moved higher after remaining at around the same level for about three weeks,” says Sam Khater, Freddie Mac’s chief economist. “The rise in rates was driven by continued improvement in consumer spending and partly due to optimism around a forthcoming cut in short term interest rates, which should provide support for business and investor sentiment.”

Even though rates moved slightly higher, “homebuyers are taking advantage of the multi-year low rates in droves, which is evident in the consistently higher refinance and purchase application volumes,” Khater adds. “The improvement in housing demand should provide sufficient momentum for the housing market and economy during the rest of the year.”  

Weekly mortgage rate changes

• The 30-year fixed-rate mortgage (FRM) averaged 3.81% with an average 0.6 point, up from last week when it averaged 3.75 percent. A year ago, the 30-year FRM averaged 4.52 percent. 

• The 15-year FRM averaged 3.23% with an average 0.5 point, up from last week when it averaged 3.22 percent. A year ago, the 15-year FRM averaged 4.0%. 

• The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.48% with an average 0.4 point, up from last week when it averaged 3.46 percent. A year ago, the 5-year ARM averaged 3.87%.

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