Mortgage rates did not move much this past week, as the benchmark 30-year fixed inched lower and remains at the lowest level in seven months, according to Bankrate.com’s weekly national survey.
The average 30-year fixed mortgage had a rate of 4.02% on Wednesday, June 14 – the lowest since Nov. 16, 2016 – and an average of 0.24 discount and origination points.
The larger jumbo 30-year fixed nosed up to 4%, and the average 15-year fixed mortgage rate settled at 3.25%. Adjustable mortgage rates (ARMs) were mixed, with the three-year ARM slipping to 3.48%, while the seven-year ARM climbed to 3.6%.
Despite another interest rate hike by the Federal Reserve, mortgage rates are hovering at the lowest point since mid-November and are little changed from where they were 18 months ago, when the Fed started boosting interest rates. The common theme – then, as now – has been a slow growth economy with low inflation, according to Bankrate.
This week brought additional evidence of low inflation, and the recent softening has garnered the attention of the Fed, which noted in its statement that it is “monitoring inflation developments closely.” Mortgage rates are closely related to yields on long-term government bonds, which appeal to investors any time uncertainty, or low inflation, is in the air.
Some details:
- 30-year fixed: 4.02% – down from 4.04% last week (avg. points: 0.24)
- 15-year fixed: 3.25% – up from 3.24% last week (avg. points: 0.21)
- 5/1 ARM: 3.41% – up from 3.4% last week (avg. points: 0.30)