Freddie Mac’s Primary Mortgage Market Survey (PMMS) reveals mortgage rates have stabilized, with the most recent 30-year fixed rate mortgage coming in near 3.8% for the third-consecutive week.
“While the continued drop in mortgage rates has paused, homebuyer demand has not,” said Sam Khater, Freddie Mac’s Chief Economist. “This is evident in increased purchase activity and loan amounts, indicating that homebuyers still have the willingness and capacity to purchase homes. Today’s low rates, strong job market, solid wage growth and consumer confidence are typically important drivers of home sales.”
After weeks of decline, the 30-year fixed rate mortgage averaged 3.84% for the week ending June 20, which is a slight increase from last week’s 3.82%. The rate last year was 4.57%.
Fifteen-year fixed-rate mortgages fell to 3.25% this week from 3.26%, and have fallen year-over-year from 4.04%.
Ellie Mae released its Origination Insight Report for May 2019, and it revealed that the 30-year note rate dropped for the fifth-consecutive month to 4.52%.
May’s rate of 4.52% is down from April’s rate of 4.61% and a decrease from 4.84% from May 2018. The report added that the time to close rose slightly from 40 days in April to 42 in May.
Refinances closed in 37 days in May, which is a slight increase from the reported 33 days in April. Purchase loans closed in 44 days, increasing by one day from April.
All closing times increased year-over-year, as in May 2018 closing times were 41 days, and purchases closed in 43 days. Closing times for refinances was unchanged at 37 days.
“As the 30-year note rate declines for yet another month, we are seeing purchase and refinance activity on the rise,” said Jonathan Corr, President and CEO of Ellie Mae. “Closing rates remain well over 75 percent and with the Mortgage Bankers Association reporting solid purchase volume and new inventory on the rise, we could be in for a very robust summer home buying season.”