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Freddie Mac Mortgage Rates Normalize After Last Week’s Jump

In Freddie Mac’s most recent Primary Mortgage Market Survey (PMMS) the rates for average fixed mortgages dropped from last week’s unusual high.

The Government-Sponsored Enterprise reported that the 30-year fixed rate mortgage (FRM) averaged 4.0 percent with an average 0.7 point for the week ending June 18, 2015. This is down from the previous week’s rate of 4.04 percent. A year ago, the 30-year FRM averaged 4.17 percent.

Last week’s rate of 4.04 was the first time the 30-year fixed-rate mortgage was above 4 percent for the first time since November 6,2014, when it averaged 4.02 percent. Len Kiefer, Freddie Mac’s deputy chief economist, attributed last week’s spike to the surge in Treasury yields as well as the strong employment data that was released.

Additional stats from the report include:

  • Fifteen-year FRMthis week averaged 3.23 percent with an average 0.5 point, down from last week when it averaged 3.25 percent. A year ago at this time, the 15-year FRM averaged 3.30 percent.
  • Five-year Treasury-indexed hybrid adjustable-rate mortgage(ARM) averaged 3.00 percent this week with an average 0.4 point, down from last week when it averaged 3.01 percent. A year ago, the 5-year ARM averaged 3.00 percent.
  • One-year Treasury-indexed ARMaveraged 2.53 percent this week with an average 0.2 point, unchanged from last week. At this time last year, the 1-year ARM averaged 2.41 percent.

"Mortgage rates were down this week while housing data were generally positive. Although housing starts dropped 11.1 percent to a seasonally adjusted pace of 1.04 million units in May, housing permits surged 11.8 percent to its highest level since August 2007. Reinforcing this positive momentum, the NAHB housing market index rose 5 points in June, suggesting home builders are very optimistic about home sales in the near future," said Kiefer.

Click here to view Freddie Mac's Primary Mortgage Market Survey.

About Author: Xhevrije West

Xhevrije West is a writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University.

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