Mortgage rates fell for the fourth straight week, according to the weekly survey from Freddie Mac.
- 30-YR FRM: Averaged 6.28% for the week ending April 6th, down 4 basis points from last week and are now down 45 basis points since the start of March.
- 15-YR FRM: Averaged 5.64% for the week ending April 6th, up 8 basis points from last week and up 173 basis points from one year ago.
Analysis. Sam Khater, Freddie Mac’s Chief Economist, said concern over rates is no longer the pressing issue. It’s all about inventory…again. “Mortgage rates continue to trend down entering the traditional spring homebuying season…Unfortunately, those in the market to buy are facing a number of challenges, not the least of which is the low inventory of homes for sale, especially for aspiring first-time homebuyers.”
PREDICTION: The 30-year FRM is now 156 basis points higher than it was one year ago. I think we are going to see the spread fall under 100 bips in two weeks. Especially if we get a bad jobs report tomorrow.