Mortgage rates have fallen in four of the past five weeks, and have more or less stabilized during the past two months, according to Freddie Mac’s Primary Mortgage Market Survey.
During the week ended June 28, the average rate for a 30-year fixed-rate mortgage (FRM) was 4.55%, down from 4.57% the previous week. A year ago at this time, the 30-year FRM averaged 3.88%.
The average rate for a 15-year FRM was 4.04% – unchanged from the previous week. A year ago at this time, the 15-year FRM averaged 3.17%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.87%, up from 3.83%. A year ago at this time, the five-year ARM averaged 3.17%.
Sam Khater, chief economist for Freddie Mac, says mortgage rates have settled down during the past two months.
“The decrease in borrowing costs are a nice slice of relief for prospective buyers looking to get into the market this summer,” Khater says in a statement. “Some are undoubtedly feeling the affordability hit from swift price appreciation and mortgage rates that are still 67 basis points higher than this week a year ago.
“As highlighted in our June Forecast, the economy and housing market overall are on solid footing this summer, which should support continued strength in housing demand,” Khater adds. “Home price growth is still high, but is expected to moderate, and while sales activity has slowed, it’s primarily because of stubbornly low supply.”