According to Freddie Mac's latest Primary Mortgage Market Survey, U.S. mortgage rates dipped for the second consecutive week of June 2018.
Sam Khater, Freddie Mac's chief economist, says the 30-year fixed-rate mortgage declined two basis points to 4.54 percent. "Homebuyers have taken advantage of the recent moderation in rates, which led to a 4 percent increase in purchase applications last week," he said. "Although demand has remained steadfast against the backdrop of this year's higher borrowing costs, it's important to note that the growth rate of purchase loan balances has moderated so far this year - and particularly since March. This slowdown indicates that buyers are having difficulty stretching to keep up with the pace of home-price growth."
Added Khater, "While the very healthy job market continues to fuel interest in buying a home, the supply shortages in most markets are pushing prices higher and currently keeping sales at a standstill. Listings for new and existing homes need to increase in the months ahead to moderate price growth and reignite sales activity."
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 4.54 percent with an average 0.5 point for the week ending June 7, 2018, down from last week when it averaged 4.56 percent. A year ago at this time, the 30-year FRM averaged 3.89 percent.
15-year FRM this week averaged 4.01 percent with an average 0.4 point, down from last week when it averaged 4.06 percent. A year ago at this time, the 15-year FRM averaged 3.16 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.74 percent this week with an average 0.4 point, down from last week when it averaged 3.80 percent. A year ago at this time, the 5-year ARM averaged 3.11 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.