After six consecutive weeks of decline, the average fixed mortgage rates rose in the first week of June, according to Freddie Mac, the government backed mortgage giant's weekly survey.
According to the report, 30-year-fixed mortgage rates ticked up slightly to 4.14 percent from last week's 4.12 percent. The average 15-year fixed interest rates were also up 3.23 percent from last week's 3.21 percent.
However, the five-year adjustable rate mortgage averaged 2.93 percent, down from last week's 2.94 percent. The average one-year treasury-indexed adjustable rate mortgage was also down 2.40 percent from last week's 2.41 percent.
The rates rose after falling continuously for six weeks. Last month the rates hit the lowest ever recorded in 2014.
Experts attribute the slight spike in the rates on a "light" economic report and an improvement in the manufacturing industry performance.
"Mortgage rates were little changed amid a week of light economic reports. Of the few releases, real GDP was revised down to -1.0 percent growth in the first quarter of 2014. ADP Research Institute estimated the private sector added 179,000 jobs in May, which followed a slight downward revision of 5,000 jobs in April. Meanwhile, the Institute for Supply Management reported the manufacturing industry saw a slight acceleration in monthly growth for May," Frank Nothaft, chief economist and vice president at Freddie Mac, said in a statement.
Despite a slight increase in interest rates, mortgages are still at record lows. The Federal Reserve announced last year that it would keep scaling back its bond-buying scheme until the economy showed significant improvement. However, with the Gross Domestic Product revised down and sluggish job growth, the Fed said it would hold mortgage rates at its record lows.
Experts previously expected mortgage rates to rise as the year progressed. However, the winter chill in the first few months of 2014 dampened sales and hampered home buying activity. They were optimistic about the spring market but the period showed little improvement.
"So far, the housing takeoff has simply not taken off. Prices are rising, but new home construction remains well below pre-crisis levels and has disappointed forecasters so far this year," Peter Morici, professor at the Robert H. Smith School of Business at the University of Maryland, wrote for The Epoch Times.
Morici adds that the Fed's focus should soon shift to raising interest rates.
"The Fed is on track to end its purchases of long-term Treasury and mortgage-backed securities by the end of the year, and the minutes of its policymaking committee indicate the focus is now on how and when to raise interest rates in 2015," he writes. "Once out of control-as it was during the Ford and Carter years, inflation becomes very tough to contain."
