Mortgage rates keep rising in U.S. housing market

Image result for Mortgage rates keep rising in U.S. housing marketWASHINGTON, April 26 (Xinhua) — Mortgage rates kept moving up in the United States for the fourth consecutive week, the U.S. Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, said on Thursday.

For the week ending April 25, 30-year fixed-rate mortgage (FRM) in the United States rose to 4.2 percent from previous week’s 4.17 percent.

Even as the reading of mortgage rate kept rising, the 30-year FRM rate remained at a low level. For the same period one year ago, the 30-year FRM averaged 4.58 percent.

Besides, Freddie Mac noted that 15-year FRM this week edged up to 3.64 percent, which was higher than previous week’s reading of 3.62 percent. However, the rate of 15-year FRM was lower over the year and the figure was 4.02 percent for the same period a year ago.

As mortgage rates rose, Mortgage Bankers Association reported on Wednesday that both mortgage applications and refinance activities dropped in the United States.

“Despite the recent rise in mortgage rates, both existing and new home sales continue to show strength — indicating the lagged effect of lower rates on housing demand,” said Sam Khater, chief economist of Freddie Mac.

“This, along with improved affordability, should push housing activity higher in the coming months,” said Khater.

Freddie Mac is a corporation founded by U.S. Congress, aiming at promoting the stability and affordability in the U.S. housing market by purchasing mortgages from banks and other loan makers. The corporation has been conducting weekly surveys on U.S. mortgage rate since April 1971.