Keep up with current rates and related news at HousingWire’s Mortgage Rates Center. Rates are updated twice weekly based on data from the Mortgage Bankers Association (MBA) and Freddie Mac‘s Primary Mortgage Market Survey (PMMS). Freddie Mac’s PMMS only covers purchase mortgages. In addition, the PMMS looks at mortgage rates from the first three days of the week from lender websites, while the MBA survey covers the rates on apps collected over the prior full week.
The average 30-year fixed-rate mortgage fell three basis points from the week prior to 2.93%. This marks the first time in over two months mortgage rates have fluctuated outside a five basis point range above or below 3%.
“Mortgage rates continued to drift down as markets concur with the view that inflation increases are temporary,” said Sam Khater, Freddie Mac’s Chief Economist.
Fannie Mae‘s economic and strategic group mirrored a similar outlook on inflation’s transitory effects on both mortgage rates and the housing market.
After three straight weeks of declines, mortgage applications increased 4.2% for the week ending June 11, 2021. Both purchase and refinance applications increased, with refinances notably up 5.5%, according to Joel Kan, the MBA’s vice president of economic and industry forecasting.
“The jump in refinances was the result of the 30-year fixed rate falling for the third straight week to 3.11%, which is the lowest since early May,” Kan said. “U.S. Treasury yields have slid because of the uncertainty in the financial markets regarding inflation, and how the Federal Reserve may act over the next few months.”
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