Average fixed mortgage rates are little changed from the previous week amid reports of the U.S. housing market strengthening, according to Freddie Mac.
The 30-year fixed-rate mortgage averaged 4.02% with an average 0.7 point for the week ending June 25, 2015, up from last week when it averaged 4.00%. A year ago at this time, the 30-year FRM averaged 4.14%.
“Mortgage rates were little changed this week. The rate on 30-year fixed-rate mortgages was 4.02%, an increase of just 2 basis points from the previous week. Economic releases confirmed increasing strength in housing,” said Sean Becketti, chief economist, Freddie Mac. “Existing home sales increased 5.1% in May to an annual pace of 5.35 million units and new home sales increased 2.2% to an annual pace of 546,000 units.
“Buyers appear anxious to purchase homes before the expected increase in interest rates later this year. Given the tight inventory of homes for sale, a 5.1-month supply at the current sales pace, home prices are being bid up,” he said.
The 15-year FRMthis week averaged 3.21% with an average 0.6 point, down from last week when it averaged 3.23%. A year ago at this time, the 15-year FRM averaged 3.22%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage(ARM) averaged 2.98% this week with an average 0.4 point, down from last week when it averaged 3.00%. A year ago, the 5-year ARM averaged 2.98%.
The 1-year Treasury-indexed ARM averaged 2.50% this week with an average 0.3 point, down from last week when it averaged 2.53%. At this time last year, the 1-year ARM averaged 2.40%.