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Mortgage Rates Stay Flat as Europe Trembles

Mortgage rates remained somewhat flat for the week ending June 28, according to ""Freddie Mac's"":http://www.freddiemac.com/ Primary Mortgage Market Survey.

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Average fixed mortgage rates remained largely unchanged, helping to keep affordability high for buyers in the market to purchase a home or looking for a refinance.

The 30-year fixed averaged 3.66 percent (0.7 point), staying level with the all-time low that was achieved the previous week. At this time in 2011, the 30-year fixed averaged 4.51 percent.

The 15-year fixed averaged 2.94 percent (0.7 point), down slightly from 2.95 percent the previous week. This week's average matches the all-time low set in the first week of June 2012. At the same time last year, the 15-year fixed rate mortgage averaged 3.69 percent.

The 5-year adjustable rate mortgage (ARM) averaged 2.79 percent (0.6 point) this week, up from 2.77 percent last week. A year ago, the 5-year ARM averaged 3.22 percent.

The 1-year ARM averaged 2.74 percent (0.4 percent), unchanged from last week. At this time last year, the 1-year ARM averaged 2.97 percent.

""Mortgage rates were virtually unchanged this week, hovering at or near record lows, and should further help to support a recovering housing market,"" said ""Frank Nothaft"":http://www.freddiemac.com/bios/exec/nothaft.html, VP and chief economist for Freddie Mac.

""Both the S&P/Case Shiller 20-city composite and the Federal Housing Finance Agency's house price indexes showed over a 0.5 percent monthly increase in April,"" he added. ""Meanwhile, pending existing home sales rebounded in May by 5.9 percent to match a two-year high, and new home sales jumped 7.6 percent to its fastest pace since April 2010.""

""Bankrate.com's"":http://www.bankrate.com/ weekly survey showed a similar steadiness, with both the 30-year fixed and the 15-year fixed remaining unchanged from last week (3.89 percent and 3.16 percent, respectively). The 5-year ARM increased to 3.02 percent from 2.97 percent a week ago.

""The lingering uncertainty about Europe's debt mess and, to a lesser extent, the status of the global economy will keep mortgage rates in a holding pattern. Don't expect any sharp increases without substantive improvement out of Europe, and if the situation deteriorates further, then look out below because mortgage rates could certainly fall further,"" said Bankrate.com.

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