After four consecutive weeks of mortgage application declines, the Mortgage Bankers Association (MBA) reported that application volume increased by 5.0% on a seasonally adjusted basis for the week ending June 7th. While application volume decreased on a week-by-week basis from May 10th to May 31st, 30-year fixed rate mortgage (FRM), 15-year fixed rate mortgage (FRM), and 5/1-year adjustable rate mortgage (ARM) interest rates rose during that time period and into the June 7th survey week when application volume increased.
Freddie Mac’s Primary Mortgage Market Survey (PMMS) has also recorded mortgage interest rates trending upward. For six consecutive weeks, from May 2nd to June 13th, Freddie Mac’s PMMS has shown steady rate increases in 30-year FRM, 15-year FRM, and 5/1 ARMs.
Are the survey results reported by the MBA and Freddie Mac an indication that record low mortgage interest rates have run their course? Les Christie at CNN Money believes this to be the case and tells readers to “Say goodbye to ultra-low mortgage rates.” As the economy continues to stabilize, Christie states that the Fed will “stop bolstering the housing market” and points out that, historically, 30-year FRM interest rates “are usually 5.5 percent or higher.” To read Christie’s full article, go to http://aol.it/160BhNG.