Freddie Mac: 30-Year Fixed Mortgage Rate Drops, Along with 5-Year ARM

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Freddie Mac’s latest Primary Mortgage Market Survey (PMMS) shows that the 30-year fixed-rate mortgage (FRM) averaged 2.93 percent for the week ending June 17, down from 2.96 percent a week earlier.

A year ago at this time, the 30-year FRM averaged 3.13 percent.

The PMMS also shows that the 15-year fixed-rate mortgage averaged 2.24 percent with an average 0.6 point, up slightly from last week, when it averaged 2.23 percent.

A year ago, the 15-year FRM averaged 2.58 percent.

“Mortgage rates continue to drift down as markets concur with the view that inflation increases are temporary,” says Sam Khater, Freddie Mac’s chief economist. “While mortgage rates are low, purchase demand has weakened over the last couple of months, primarily due to affordability constraints stemming from high home prices. With inventory tight, the slowdown in demand has yet to impact prices, meaning the summer will likely remain a strong seller’s market.”

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.52 percent with an average 0.3 point, down from last week (2.55 percent). A year ago at this time, the five-year ARM averaged 3.09 percent.

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