According to Freddie Mac's latest Primary Mortgage Market Survey, U.S. mortgage rates inched back over the past week and have now declined in three of the past four weeks.
Sam Khater, Freddie Mac's chief economist, says mortgage rates remained mostly tranquil heading into the first week of summer, declining five basis points to 4.57 percent. "After a sharp run-up in the early part of 2018, rates have stabilized over the last three months, with only a modest uptick since March," he said. "However, existing-home sales have hit a wall, declining in six of the last nine months on a year-over-year basis."
Added Khater, "This indicates that persistently low supply levels, and not this year's climb in mortgage rates, are handcuffing sales - especially at the lower end of the market. Home shoppers can't buy inventory that doesn't exist."
Freddie Mac News Facts:
30-year fixed-rate mortgage (FRM) averaged 4.57 percent with an average 0.5 point for the week ending June 21, 2018, down from last week when it averaged 4.62 percent. A year ago at this time, the 30-year FRM averaged 3.90 percent.
15-year FRM this week averaged 4.04 percent with an average 0.4 point, down from last week when it averaged 4.07 percent. A year ago at this time, the 15-year FRM averaged 3.17 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.83 percent this week with an average 0.3 point (unchanged from last week). A year ago at this time, the 5-year ARM averaged 3.14 percent.
The National Association of Realtors is reporting this week that single female buyers continue to be a powerful force in the U.S. housing market, while low inventory, rising interest rates and increasing home prices remain, holding back first-time buyers despite notable interest in buying a home.