Freddie Mac: Fixed Mortgage Rates Fall Back To Near 4%

Posted by Patrick Barnard on June 18, 2015 No Comments
Categories : Residential Mortgage

After increasing significantly the previous week, fixed mortgage rates edged back down to near 4% during the week ended June 18, according to Freddie Mac's Primary Mortgage Market Survey.

The average rate for a 30-year fixed-rate mortgage (FRM) was 4.00%, down from 4.04% the previous week. A year ago at this time, the 30-year FRM averaged 4.17%.

The average rate for a 15-year FRM was 3.23%, down from 3.25%. A year ago at this time, the 15-year FRM averaged 3.30%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.00%, down slightly from 3.01%. A year ago, the five-year ARM averaged 3.00%.

The average rate for a one-year Treasury-indexed ARM was 2.53%, unchanged from the previous week. At this time last year, the one-year ARM averaged 2.41%.

‘Mortgage rates were down this week while housing data were generally positive,’ says Len Kiefer, deputy chief economist for Freddie Mac, in a release. ‘Although housing starts dropped 11.1 percent to a seasonally adjusted pace of 1.04 million units in May, housing permits surged 11.8 percent to [reach their] highest level since August 2007. Reinforcing this positive momentum, the NAHB housing market index rose five points in June, suggesting home builders are very optimistic about home sales in the near future.’

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