Average fixed mortgage rates following 10-year Treasury yield lower after the May employment report came in well below expectations, according to the recently released Freddie Mac Primary Mortgage Market Survey® (PMMS®).
According to the PMMS, the 30-year fixed-rate mortgage (FRM) averaged 3.60 percent with an average 0.5 point for the week ending June 9, 2016, down from last week when it averaged 3.66 percent. A year ago at this time, the 30-year FRM averaged 4.04 percent.
“Growing optimism about the state of the economy was quickly erased with May’s employment report,” says Sean Becketti, chief economist, Freddie Mac. “The disappointing release caused an immediate flight to quality resulting in the 10-year Treasury yield dropping 10 basis points on Friday. This week marks the 10th consecutive week the 30-year rate has averaged under 3.7 percent, allowing an extended window for homebuyers to take advantage of these historically-low borrowing costs.”
The 15-year FRM this week averaged 2.87 percent with an average 0.5 point, down from last week when it averaged 2.92 percent. A year ago at this time, the 15-year FRM averaged 3.25 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.82 percent this week with an average 0.5 point, down from last week when it averaged 2.88 percent. A year ago, the 5-year ARM averaged 3.01 percent.
For more information, visit www.FreddieMac.com.