Mortgage rates are trending downward, and are expected to remain low for the foreseeable future.
According to Freddie Mac’s recently released Primary Mortgage Market Survey® (PMMS®), the 30-year fixed-rate mortgage (FRM) averages 3.54 percent with an average 0.5 point. The 15-year FRM, reports the survey, averages 2.81 percent with an average 0.5 point.
“The 10-year Treasury yield continued its free fall this week as global risks and expectations for the Fed's June meeting drove investors to the safety of government bonds,” said Sean Becketti, Freddie Mac’s chief economist, in a statement “The 30-year mortgage rate responded by falling six basis points for the second straight week to 3.54 percent—yet another low for 2016. Wednesday's Fed decision to once again stand pat on rates, as well as growing anticipation of the U.K.'s upcoming European Union referendum will make it difficult for Treasury yields and—more importantly—mortgage rates to substantially rise in the upcoming weeks.”
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM), according to the survey, averages 2.74 percent with an average 0.5 point.
Source: Freddie Mac
Published with permission from RISMedia.