Mortgage Rates Inch Up, Stay Below 5%
Average rates for 30-year fixed-rate mortgages (FRM) started the month of June up slightly, but were still near record lows in two weekly surveys. The Freddie Mac (FRE) weekly survey put the average rate for a 30-year (FRM) at 4.79% with an average 0.8 origination point for the week ending June 3, up from last week's average of 4.78%, ending a seven-week-long run of decreased or steady rates. A year ago, the 30-year FRM averaged 5.29%. The Bankrate survey of large banks and thrifts put the average rate for a 30-year FRM at 4.95% with a 0.45 origination point, up from last week's record-setting low of 4.92%. A year ago, the 30-year FRM averaged 5.65% in the Bankrate survey. “The economy grew at a slower rate than originally reported in the first three months of the year, according to the Bureau of Economic Analysis, which suggests inflation will remain tame in the near term,” said Frank Nothaft, Freddie Mac vice president and chief economist. “As a result, mortgage rates held at historic levels this week. In fact, rates on 15-year fixed-rate mortgages set another record low for the third week in a row," he added. Freddie said the 15-year FRM averaged 4.2% with an average 0.7 point, down from last week's average of 4.21% and last year's average of 4.79%. It's a new average low since Freddie Mac began following the product in 1991. Bankrate put the average rate for a 15-year FRM averaged 4.36% with a 0.46 point, up from last week's average of 4.34%. Average rates for five-year adjustable-rate mortgages (ARMs) were down this week. Freddie said the five-year Treasury-indexed hybrid ARM averaged 3.94% with an average 0.7 point this week, down from last week's average of 3.97% and a year ago, when the average was 4.85%. Bankrate put the average rate for a five-year ARM at 4.21% with a 0.46 point, down from last week's average of 4.26%. Freddie also said the one-year ARM averaged 3.95% with a 0.7 point, the same as one week ago, but lower than one year ago, when the average was 4.81%. Write to Austin Kilgore. The author held no relevant investments.