Mortgage interest rates dropped slightly, with the 30-year fixed-rate mortgage averaging 2.93%, according to the latest Freddie Mac Primary Mortgage Market Survey®.
Here’s where rates stand:
– 30-Year Fixed-Rate Mortgage: Averaged 2.93% with an average 0.7 point for the week ending June 17, 2021, up from the prior week when it averaged 2.96%. Last year, the 30-year FRM averaged 3.13%.
– 15-Year Fixed-Rate Mortgage: Averaged 2.24% with an average 0.6 point, up slightly from last week when it averaged 2.23%. Last Year, the 15-year FRM averaged 2.58%.
– 5-Year Treasury-Indexed Hybrid Adjustable-Rate Mortgage (ARM): Averaged 2.52% with an average 0.3 point, down from last week when it averaged 2.55%. Last year, the 5-year ARM averaged 3.09%.
The takeaway:
Market demand has dwindled slightly, but prices remain high. While inflation remains a concern, experts say it’s only temporary, with fears of a housing bubble unfounded due to stricter lending laws and a more robust economy than when the housing market last crashed.
“Mortgage rates continue to drift down as markets concur with the view that inflation increases are temporary,” said Sam Khater, Freddie Mac’s chief economist. “While mortgage rates are low, purchase demand has weakened over the last couple of months, primarily due to affordability constraints stemming from high home prices. With inventory tight, the slowdown in demand has yet to impact prices, meaning the summer will likely remain a strong seller’s market.”
Liz Dominguez is RISMedia’s senior online editor. Email her your real estate news ideas to lizd@rismedia.com.
