
Mortgage rates continue to hover not far above historic lows, an incentive for would-be homebuyers and homeowners who could benefit from refinancing. Freddie Mac’s latest Primary Mortgage Market Survey showed little change in average rates over the last week, with rates on 30-year fixed-rate mortgages staying just under 3 percent. “Home prices continue to accelerate while inventory remains low and new home construction cannot happen fast enough,” said Freddie Mac Chief Economist Sam Khater, in a statement. “There are many potential homebuyers who would like to take advantage of low mortgage rates, but competition is strong. For homeowners however, continued low rates make refinancing an option worth considering.” Home prices were up 13 percent from a year ago in April, CoreLogic data shows, creating challenging conditions for first-time homebuyers, although a Redfin analysis shows higher-end home sales are up 26 percent year over year this spring. A separate survey out this week from the Mortgage Bankers Association showed demand for mortgages dropping during the last week of May to levels not seen since before the pandemic. Freddie Mac’s weekly Primary Mortgage Market Survey showed that during the week ending June 3:
- Rates on 30-year fixed-rate mortgages averaged 2.99 percent with an average 0.6 point, up from 2.95 percent last week but down from 3.18 percent a year ago. The all-time low for 30-year fixed-rate mortgage in Freddie Mac records dating to 1971 was seen during the week ending Jan. 7, 2021, when rates averaged 2.65 percent.
- For 15-year fixed-rate mortgages, rates averaged 2.27 percent with an average 0.6 point, unchanged from last week and down from 2.62 percent a year ago. The all-time low for 15-year fixed rate mortgages in records dating to 1991 was also seen during the week ending Jan. 7, 2021, when rates averaged 2.16 percent.
- Rates on 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans averaged 2.64 percent with an average 0.2 point, up from 2.59 percent last week but down from 3.10 percent a year ago. Rates on 5-year ARM loans hit an all-time low of 2.56 percent during the week ending May 2, 2013, in Freddie Mac records dating to 2005.