Mortgage rates remained almost the same this week versus last week, according to Freddie Mac. The 30-year fixed-rates were unchanged at 5.88% for the third straight week. The 15-year rates slipped 2 basis points to 5.40%, while 5/1 and one-year ARM rates were 8 basis points lower to 5.48% and 5.10%, respectively.
"Interest rates for fixed-rate mortgages held relatively steady for a second week, while ARM rates continued to decline amid market speculation that the Federal Reserve may cut rates again at its upcoming Committee meeting," Freddie Mac Chief Economist Frank Nothaft said. Many in the market are now expecting just a 25 basis point cut to 2% after the recent inflation news reported from the PPI and Beige Book.
With mortgage rates holding steady, application activity is likely to have remained stable this week. Yesterday, the Mortgage Bankers Association reported its Refinance Index rose 5.2% to 2866 for the week ending April 11, while it's Purchase Index was nearly 1% lower to 382.