Prospective buyers of real estate in West Hollywood may have trouble understanding how higher home prices benefit them, as many associate low mortgage rates with affordable buying conditions. However, new of rising rates also means economic improvements and housing market stability, as highlighted in the most recent Primary Mortgage Market Survey from Freddie Mac.
According to the report for the week ending March 28, the average rate for 30-year fixed-rate mortgages rose to 3.57 percent from 3.54 percent recorded the previous week. Despite the week-over-week gain, the average rate was still notably lower than the 3.99 percent average recorded this time a year ago. Comparatively, the average rate for 15-year FRMs also grew to 2.76 percent, up from 2.72 percent one week earlier. However, the average is still significantly lower than the 3.23 percent average from the year before.
While this week's inclined mortgage rates may be the start of an upward trend, economists from the government-sponsored enterprise don't expect rates to rise above 4 percent in 2013.
"Low and relatively steady mortgage rates are invigorating the housing market," said Frank Nothaft, vice president and chief economist for Freddie Mac. "For instance, existing home sales over January and February experienced the strongest two-month pace since November 2009, while new home sales were the strongest since August and September 2008."