Mortgage rates fell slightly during the week ended June 7, with the average rate for a 30-year fixed-rate mortgage falling two basis points to 4.54%, according to Freddie Mac’s Primary Mortgage Market Survey.
It was the second consecutive week that the average rate for a 30-year dipped. A year ago at this time, the 30-year FRM averaged 3.89%.
“Homebuyers have taken advantage of the recent moderation in rates, which led to a four percent increase in purchase applications last week,” says Sam Khater, chief economist for Freddie Mac, in a statement. “Although demand has remained steadfast against the backdrop of this year’s higher borrowing costs, it’s important to note that the growth rate of purchase loan balances has moderated so far this year – and particularly since March. This slowdown indicates that buyers are having difficulty stretching to keep up with the pace of home-price growth.
“While the very healthy job market continues to fuel interest in buying a home, the supply shortages in most markets are pushing prices higher and currently keeping sales at a standstill,” Khater adds. “Listings for new and existing homes need to increase in the months ahead to moderate price growth and reignite sales activity.”
The average rate for a 15-year FRM was 4.01%, down from 4.06% the previous week. A year ago at this time, the 15-year FRM averaged 3.16%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.74%, down from 3.80%. A year ago at this time, the five-year ARM averaged 3.11%.
