- Posted April 24, 2014 by
30-Year mortgage Rates Increase For The Week Ending April 24
The average rate for 30-year mortgages rose from 4.27% to 4.33% while the 15-year mortgage increased by 3.33% to 3.39% according to Freddie Mac. That is almost an increase of one percent since rates hit an all time low around 12 months ago.
The significant decrease in bond purchases by the Federal Reserve has a direct impact on mortgage rates. Higher rates means lower home sales since many buyers prefer to wait until rates decline before making the big purchase. New home sales decreased by 14.5% in March. Applications for new mortgage loans decreased by 3.3%. Analysts predict that home prices will rise in the next 8 months. The rate for a 1-year adjustable mortgage remains at 2.44. The average rate on a 5-year adjustable mortgage is at 3.03%.