The results of Freddie Mac’s Primary Mortgage Market Survey show the 30-year fixed-rate mortgage averaged 6.28% for the week of April 6, down from the prior week when it averaged 6.32%. A year ago at this time, the rate averaged 4.72%.
“Mortgage rates continue to trend down entering the traditional spring home buying season,” says Sam Khater, Freddie Mac’s chief economist. “Unfortunately, those in the market to buy are facing a number of challenges, not the least of which is the low inventory of homes for sale, especially for aspiring first-time home buyers.”
The 15-year fixed-rate mortgage averaged 5.64%, up from the prior week when it averaged 5.56%. A year ago at this time, the rate averaged 3.91%.
Mortgage applications for the week ending March 31 decreased 4.1% from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey.
“Spring has arrived, but the housing market is missing the customary burst in listings and purchase activity that typically mark the season,” says Mike Fratantoni, MBA’s senior vice president and chief economist. “After four weeks of increasing purchase application activity, volume declined a bit this week even with another small drop in mortgage rates.”
The association’s Refinance Index decreased 5% from the previous week and was 59% lower than the same week one year ago, while the seasonally adjusted Purchase Index decreased 4% from one week earlier.
“At the entry-level segment of the market, purchase applications for both FHA and VA loans decreased last week,” adds Fratantoni. “We do expect strong demand from first-time home buyers over the next several years given the large number of millennials hitting peak first-time home buyer age, but affordability remains a real challenge in this environment.”
