Us mortgage rates hit 2015 high

Mortgage rates in the US have reached their highest level in 2015 so far.

Average fixed mortgage rates moved higher at the end of May, following positive housing data. New home sales surged 6.8 per cent to an annual pace of 517,000 units in April, according to the National Association of Realtors.

The latest Freddie Mac data shows that 30-year fixed-rate mortgages averaged 3.87 per cent with an average 0.6 point for the week ending May 28, 2015, up from the previous week when it averaged 3.84 per cent.

The 15-year FRM averaged 3.11 per cent with an average 0.5 point, up from the previous week when it averaged 3.05 per cent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.90 per cent with an average 0.5 point, up from the previous week when it averaged 2.88 per cent. A year ago, the 5-year ARM averaged 2.96 percent.

"Although existing home sales slipped 3.3 per cent to a seasonally-adjusted pace of 5.04 million units, sales are up 6.1 per cent on a year-over-year basis," comments Len Kiefer, deputy chief economist, Freddie Mac.

"The S&P/Case-Shiller 20-city home price index] also posted a solid gain of 5 percent over the 12-months ending in March 2015."

As rates climbed, mortgage applications also decreased, according to the Mortgage Bankers Association.

Applications fell 7.6 per cent week-on-week at the end of May, including an adjustment to account for the Memorial Day holiday. On an unadjusted basis, the MBA's index decreased 17 per cent compared with the previous week.

The refinance share of mortgage activity decreased to 49 per cent of total applications, its lowest level since May 2014, from 51 per cent the previous week. The adjustable-rate mortgage (ARM) share of activity decreased to 6.1 per cent of total applications.