Mortgage rates have now declined in four of the past five weeks, according to Freddie Mac’s latest Primary Mortgage Market survey.
Freddie Mac Chief Economist Sam Khater says that over the past two months mortgage rates have stabilized and are finally starting to settle down.
"The decrease in borrowing costs are a nice slice of relief for prospective buyers looking to get into the market this summer," Khater said. "Some are undoubtedly feeling the affordability hit from swift price appreciation and mortgage rates that are still 67 basis points higher than this week a year ago."
"As highlighted in our June forecast, the economy and housing market overall are on solid footing this summer, which should support continued strength in housing demand," Khater added. "Home price growth is still high, but is expected to moderate, and while sales activity has slowed, it’s primarily because of stubbornly low supply."
(Source: Freddie Mac)
According to the report, the 30-year fixed-rate mortgage averaged 4.55% for the week ending June 28, 2018, down from 4.57% last week, and up from 3.88% last year.
The 15-year FRM rose to an average 4.04% this week, remaining unchanged from last week. This time last year, the 15-year FRM was 3.17%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.87% for this week, up from 3.83% last week, and up from this time last year when it was 3.17%.