Mortgage rates decreased for a second consecutive week during the week ended June 16, according to Freddie Mac’s Primary Mortgage Market Survey.
The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.54%, down from 3.60% the previous week. A year ago at this time, the 30-year FRM averaged 4.00%.
The average rate for a 15-year FRM was 2.81%, down from 2.87%. A year ago at this time, the 15-year FRM averaged 3.23%.
The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 2.74%, down from 2.82%. A year ago, the five-year ARM averaged 3.00%.
“The 10-year Treasury yield continued its free fall this week, as global risks and expectations for the Fed’s June meeting drove investors to the safety of government bonds,” says Sean Becketti, chief economist for Freddie Mac, in a statement. “The 30-year mortgage rate responded by falling six basis points for the second straight week to 3.54 percent – yet another low for 2016. Wednesday’s Fed decision to, once again, stand pat on rates, as well as growing anticipation of the U.K.’s upcoming European Union referendum, will make it difficult for Treasury yields and – more importantly – mortgage rates to substantially rise in the upcoming weeks.”