Positive conditions in the housing market may be underway, as mortgage rate averages continued to climb in early June.
Mortgage rates rose during the week ending June 6 for the fifth consecutive week, with 30-year fixed-rate mortgages reaching 3.91 percent, according to a report from Freddie Mac. This is the first time the average 15-year fixed-rate mortgage has climbed past 3 percent since May of last year, landing at 3.03 percent the report noted. This is an increase from last week's 2.98 percent.
"In its June 5 regional economic conditions report, known as the Beige Book, the Federal Reserve noted that overall economic activity increased at a modest to moderate pace of April and May in all its districts except for Dallas which indicated strong economic growth," said Frank Nothaft, vice president and chief economist, Freddie Mac.
Further improvement in the economic recovery situation was noticeable in the recent gains in confidence among Americans. Consumer sentiment in May jumped to 84.5, according to the Thomson Reuters/University of Michigan Surveys of Consumers. This was the highest it's been since the recession.