Mortgage rates continue to fluctuate with the market unsure about how long the Federal Reserve’s aggressive mortgage-bond buying program will last.

This week rates dipped back down again, with the 30-year, fixed-rate mortgage coming in at 4.39%, Freddie Mac reported in its Primary Mortgage Market Survey. A year ago, the 30-year FRM averaged 3.62%.

Just a week earlier, the 30-year, fixed-rate mortgage skyrocketed to 4.46%, up from 3.93% — the steepest week-over-week increase on record since 1987.

The 15-year FRM this week came in at 3.39%, down from 3.50% last week. The 15-year FRM averaged 2.89% a year ago. 

Rates remain near historic lows and homebuyer affordability remains strong for the typical family in most parts of the country, which should help fuel the ongoing housing recovery, Fannie Mac wrote.

Meanwhile, the 5-year Treasury-index adjustable-rate mortgage averaged 3.10% this week, up from last week’s average of 3.08%. The 5-year ARM averaged 2.79% one year ago. 

The 1-year Treasury-index ARM remained unchanged from last week at 2.66%. At this time last year, the 1-year ARM averaged 2.68%. 

“Fixed mortgage rates fell over the holiday week as market concerns over the timing of the Federal Reserve’s pullback in bond purchases eased somewhat,” said Frank Nothaft, vice president and chief economist for Freddie Mac. 

He added, “Rates are still low by historical standards and should continue to aid in housing affordability and the ongoing recovery of the housing market.  For instance, pending home sales rose 6.7% in May to the strongest pace in over six years. In addition, residential construction spending increased in four of the first five months this year.”

Bankrate data also shows mortgage rates declining again.

Bankrate’s 30-year, FRM fell to 4.48% from 4.61% a week earlier.

In addition, the 15-year, FRM dropped to 3.62%, down from 3.73%. The 5/1 ARM actually rose to 3.48% from 3.45%.

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