Placed in Market Update
The records continue to be broken. For the week ending May 18, mortgage rates again reached new lows. The overall average rate for 30-year fixed-rate mortgages dropped by .07%, to 4.05%. The 15-year fixed-rate decreased by .05% to an average 3.30%. FHA-backed 30-year mortgages decreased to 3.75% (.02% drop) and the overall average rate for 5/1 Hybrid ARMs slipped to an average of 2.92%, a .02% decrease.
The Fed released the minutes of its April meeting, providing some indication of their economic forecasting. Indications are that they expect (as do many others) moderate growth this year. Elsewhere, it was reported that the Consumer Price Index remained the same in April; the “headline” figure was at a 2.3% annual rate and decreasing from earlier this year. Housing starts increased somewhat, nearly reaching its recent four-year high. Also, the Index of Leading Economic Indicators dropped by 0.1% last month; the first negative report since last September.