Long-term mortgages were flat in the latest week, but rates will begin to trend upward as the economy continues to improve, according to Freddie Mac. The average for 30-year, fixed-rate loans held steady at 5.59%, the 15-year, fixed-rate mortgage fell a single basis point to 4.88%, and the one-year ARM dipped to 3.47%.
"Despite strong signs of economic growth, the financial markets were nonplussed, leaving mortgage rates to hover around the same affordable level for yet another week," said Frank Nothaft, chief economist at Freddie Mac. "As the economy becomes stronger, there is every expectation that mortgage rates may begin to drift slowly upward."
