Mortgage Interest Rates Resume Weekly Slide

Average 30-year fixed mortgage rates were down again in two weekly surveys after a slight uptick last week. The Freddie Mac (FRE) weekly survey put the average rate for a 30-year fixed-rate mortgage (FRM) at 4.72% with an average 0.7 origination point for the week ending June 10, down from last week’s 4.79% average, which interrupted a seven-week-long run of falling rates. Meanwhile, the Bankrate survey of large banks and thrifts put the average rate for 30-year FRMs at a new low of 4.88% with a 0.5 origination point, down from 4.95% last week. “Following a relatively weak employment report, bond yields fell this week and mortgage rates followed,” said Freddie vice president and chief economist Frank Nothaft in a statement. “Private payrolls rose by 41,000 jobs in May, less than a quarter of the market forecast consensus of an 180,000 gain.” Bankrate, in its survey, added: “Nervous investors again piled into the safe haven of US Treasury notes, which helped bring mortgage rates to previously unseen levels. Weak hiring will further postpone the timeframe when the Federal Reserve begins boosting short-term interest rates, which is also helping keep mortgage rates low.” Freddie said the average rate for 15-year FRMs slipped down to 4.17% with an average 0.7 point, from last week’s 4.2% average. Similarly, Bankrate’s average for 15-year FRMs slid to 4.33% from 4.36% last week. Freddie put the 5-year adjustable-rate mortgage (ARM) at an average 3.92% with an average 0.7 point, down from last week’s 3.94%. It also put the 1-year FRM down to an average 3.91% with an average 0.6 point, from last week’s 3.95%. The Bankrate average for 5/1 ARMs slipped to 4.16%, from last week’s 4.21%. Write to Diana Golobay. Disclosure: the author holds no relevant investments.

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