Mortgage Rates Increase Slightly to 4.33%

Despite soft housing news, mortgage rates experienced a moderate increase ahead of next week’s economic policy update from the Federal Open Market Committee.

According to Freddie Mac’s latest Primary Mortgage Market Survey, the average 30-year fixed mortgage rate came up to 4.33 percent (0.6 point) for the week ending April 24, up from 4.27 percent in the previous week. Last year, the 30-year fixed-rate mortgage (FRM) averaged 3.40 percent, almost a full point lower.

The 15-year FRM this week averaged 3.39 percent (0.6 point), moving up from 3.33 percent.

Meanwhile, the average rates for 5- and 1-year adjustable-rate mortgages (ARMs) were unchanged at 3.03 percent (0.5 point) and 2.44 percent (0.5 point), respectively.

Bankrate.com recorded similar upticks in its own national survey, with the 30-year fixed shifting up 5 basis points to 4.43 percent and the 15-year fixed sliding up to 3.54 percent. Unlike Freddie Mac, Bankrate observed a slight increase in the 5/1 ARM, which was up to 3.34 percent.

“The economy has started to shake off the brutal winter that held back the pace of recovery, but Fed Chair Janet Yellen’s comments about inflation remaining too low is helping to keep a lid on bond yields and mortgage rates,” the finance site said in a release.

With Fed leaders scheduled to meet at the end of April to discuss the shape the economy’s in and determine what’s next for monetary policy, half of commentators in Bankrate’s weekly survey expect opportunities for more hikes ahead.

“Investors have been misconstruing every Fed statement since Janet Yellen assumed the chair, and they’ll need a few more repetitions before they wise up,” commented Holden Lewis, assistant managing editor for Bankrate.com. “I expect them to freak out over some innocuous statement by dumping mortgage bonds onto the market and causing yields to rise, and with them, mortgage rates.”