“The slowdown in economic growth around the world has caused a flight to the quality of the U.S. financial markets,” observes Sam Khater, Freddie Mac’s chief economist. “This has led to a rise in foreign investor purchases of U.S. Treasuries, causing mortgage rates to remain in place, despite the increasing dispersion of inflation across different consumer goods and services.”
“On the housing front, homebuyers continue to snap up available inventory, which has improved modestly, and home price growth is moderating,” Khater continues. “However, the next few months will be choppy as several home builders are signaling that they are going to deliver less supply amid labor and materials shortages.”
The 30-year fixed-rate mortgage averaged 2.88% with an average 0.7 point, up slightly from last week when it averaged 2.86%. A year ago at this time, the 30-year FRM averaged 2.90%. The 15-year fixed-rate mortgage averaged 2.15% with an average 0.6 point, up from last week when it averaged 2.12%. A year ago at this time, the 15-year FRM averaged 2.40%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.43% with an average 0.3 point, down from last week when it averaged 2.51%. A year ago at this time, the 5-year ARM averaged 2.90%.