Mortgage rates witnessed little movement, slightly increasing after moving lower last week, according to Freddie Mac’s Primary Mortgage Market Survey.
The 30-year, fixed rate mortgage averaged 4.17% for the week ended June 19, compared to 4.20% a week ago and 3.93% a year prior.
In addition, the 15-year, FRM dropped to 3.30% from 3.31% last week, but is up from 3.04% in 2013.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage came in at 3%, down from 3.05% a last week, but up from 2.79% a year ago.
The 1-year Treasury-indexed ARM averaged 2.41%, marginally up from 2.40% a week ago, but down from 2.57% last year.
“Mortgage rates were down slightly for the week ending on June 19, 2014. Meanwhile, housing starts in May were 6.5% below the revised April rate. Following a similar pattern, building permits fell 6.4% in May after a 5.9% increase a month earlier,” Frank Nothaft, vice president and chief economist with Freddie Mac, said.
Bankrate’s numbers posted similar results, with the 30-yr, FRM decreasing to 4.33% from 4.34%.
The 15-yr, FRM increased to 3.44% from 3.43% last week, while the 5/1 ARM remained frozen at 3.37%.
“Mortgage rates remain at attractive levels despite the ongoing tapering of bond stimulus by the Federal Reserve, defying expectations for rising rates this year. How is this? One reason is the choppy economic performance to start 2014, including a notable economic contraction in the first three months of the year,” Bankrate said.
“But a second contributor is the fact that, although the Fed is buying fewer bonds, the ongoing stimulus efforts of the European Central Bank have driven interest rates so low on the other side of the Atlantic that many overseas investors have piled into U.S. Treasuries, filling the void left by the Fed and keeping both bond yields and mortgage rates at low levels,” Bankrate continued.