Mortgage Giant, Freddie Mac released this weeks Prime Mortgage Market Survey (PMMS) showing the average mortgage rates on a fixed rate mortgage dropping to the lowest level in several months.
The surveys reveals the following:
- 30-year fixed-rate mortgage (FRM) averaged 3.89 percent with an average 0.5 point for the week ending June 8, 2017 showing a drop from last week when it averaged 3.94 percent.
- 15-year FRM this week averaged 3.16 percent with an average 0.5 point, showing a decline from last week when it averaged 3.19 percent.
- 5/1-year ARM averaged 3.11 percent this week with an average 0.5 point, remaining the same as it did last week. A year ago at this time the rates averaged 2.82 percent.
"The 30-year mortgage rate moved in tandem with Treasury yields, falling 5 basis points to 3.89 percent," Sean Becketti, Freddie Mac chief economist, said. "Mixed economic data and increasing uncertainty are continuing to push rates to the lowest levels in nearly seven months."
This fall in rates is expected to continue, even with the talk of the central bank raising rates again next week.
"Slow yet steady movements in last few weeks have now brought the mortgage rates to their lowest level of the year," Shashank Shekhar, chief executive of Arcus Lending said. "There are several geopolitical news (events) in the coming week that could have a substantial impact on the rates. There is British election results, Comey testimony, European central bank policy decision and even a possible Fed interest rate hike. With such market-moving news in the mix, it is very difficult to predict mortgage rates, but I am leaning towards a slight decline."
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.