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.
After two straight months of modest increases, pending home sales in U.S. dipped in April 2018 to their third-lowest level over the past year. All major regions saw no gain in contract activity last month.
According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index released this week, strong U.S. wage growth more than offset an increase in mortgage interest rates to boost nationwide housing affordability in the first quarter of 2018.
According to the National Association of Home Builders' 55+ Housing Market Index released this past week, U.S. builder confidence in the single-family 55+ housing market dropped five points to 66 in the first quarter of 2018.