McLEAN, Va. – June 28, 2018 – Mortgage rates declined over the past week and have now retreated in four of the past five weeks, according to Freddie Mac's weekly Primary Mortgage Market Survey. The 30-year fixed-rate mortgage dropped to an average 4.55 percent compared to last week's 4.57 percent.
Sam Khater, Freddie Mac's chief economist, says mortgage rates have settled down and stabilized over the past two months.
"The decrease in borrowing costs are a nice slice of relief for prospective buyers looking to get into the market this summer," Khater adds. "Some are undoubtedly feeling the affordability hit from swift price appreciation and mortgage rates that are still 67 basis points higher than this week a year ago."
Mortgage rate stats for the week of June 25
- The 30-year fixed-rate mortgage (FRM) averaged 4.55 percent with an average 0.5 point for the week ending June 28, 2018, down from last week when it averaged 4.57 percent. A year ago at this time, the 30-year FRM averaged 3.88 percent.
- The 15-year FRM this week averaged 4.04 percent with an average 0.5 point (unchanged from last week). A year ago at this time, the 15-year FRM averaged 3.17 percent.
- The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.87 percent this week with an average 0.3 point, up from last week when it averaged 3.83 percent. A year ago at this time, the 5-year ARM averaged 3.17 percent.
"As highlighted in our June Forecast, the economy and housing market overall are on solid footing this summer, which should support continued strength in housing demand," says Khater. "Home price growth is still high, but is expected to moderate, and while sales activity has slowed, it's primarily because of stubbornly low supply."
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