Mortgage rates have been creeping higher recently, which is the last thing an already soft housing market needs.
Exchange traded funds (ETFs) that invest in homebuilder stocks and related industries have traded in a range so far this year along with yields on 10-year Treasury notes. Mortgage rates are closely tied to 10-year yields.
Freddie Mac announced that 30-year fixed-rate mortgage rates slightly increased to an average 4.91% for the week ending April 14 from 4.87% as compared to the previous week, which is still below the 5.07% average of last year, reports Amy Hoak for MarketWatch.
The fifteen-year fixed-rate mortgage also inched up to an average 4.13% this week from 4.1% last week, and it is still below the 4.4% average a year ago.
Furthermore, adjustable-rate mortgages rose along with the 5-year Treasury-indexed hybrid adjustable-rate mortgage to an average 3.78% from 3.72% last week – the average ARM was 4.08% last year.
Frank Nothaft, vice president and chief economist of Freddie Mac, remarked that “mortgage rates edged up following a light week of economic data releases.” He also notes that “although rates on 30-year fixed mortgages have risen four weeks in a row, they have remained below 5% for eight straight weeks now, helping to maintain affordability in the housing market.”
Treasury yields declined Monday even though Standard & Poor’s cut its ratings outlook on U.S. debt.
Homebuilder ETFs include:
For more information on the housing market, visit our real estate category.
Max Chen contributed to this article.