Home Prices Up, Rates Slide in May

The turmoil of geopolitical concerns dampening rates has investors seeking solace in the bond market, and borrowers getting a break as home loan rates decreased for the third straight week.

Home price growth, for its part, is speeding up. The home price index from CoreLogic has increased 7.1 percent year-over-year from May 2017 to 2018. Home prices have decelerated only once in that time, MarketWatch reports. In a related survey, CoreLogic found that 15 percent of homeowners and 28 percent of renters want to buy a home in the next 12 months, yet only 11 percent of respondents wanted to sell their home.

Rates for home loans slid for the third straight week as investors flocked to the safety of the bond market. The 30-year fixed-rate mortgage averaged 4.52 percent during the July 5 week, down from 4.55 percent, mortgage provider Freddie Mac said Thursday. The 15-year fixed-rate mortgage averaged 3.99 percent, down five basis points. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.74 percent, down from 3.87 percent. Those rates don’t include fees associated with obtaining mortgage loans.

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