Mortgage rates dipped slightly this week, with the average rate for a 30-year falling to 4.83%, down from 4.86%, according to Freddie Mac’s weekly Primary Mortgage Market Survey.
A year ago at this time, the 30-year averaged 3.94%.
The average rate for a 15-year fixed-rate mortgage (FRM) was 4.23%, down from 4.29%. A year ago at this time, the 15-year FRM averaged 3.27%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 4.04%, down significantly from 4.14% the previous week. A year ago at this time, the five-year ARM averaged 3.23%.
“While higher mortgage rates have led to a decline in home sales this year, the weakness has been concentrated in expensive segments versus entry-level and first-time buyer which remains firm throughout most of the rest of the country,” says Sam Khater, chief economist for Freddie Mac, in a statement.
“Despite higher mortgage rates, the monthly mortgage payment remains affordable,” Khater adds. “For many buyers the chronic lack of entry-level supply is a larger hurdle than higher mortgage rates because choices are limited and the inventory shortage has caused home prices to rise well above fundamentals.”