June Rates Still on the Fall
Even with the Fed rate hike anticipation, mortgage rates continue to swing low, with the 30-year FRM falling in tandem with the 10-year Treasury yield for the week ending June 8.
The Report
According to Freddie Mac’s Primary Mortgage Market Survey, rates are now just beyond the 4 percent range.
- The 30-year fixed-rate mortgage concluded with an average of 3.89 percent, down from an average of 3.94 percent the week prior. During the same time a year ago, the 30-year FRM rate recorded an average of 3.60 percent.
- The 15-year fixed-rate mortgage also decreased from last week’s 3.19 percent average to this week’s 3.16 percent. It’s however higher than the previous year’s average of 2.87 percent.
- The 5-year Treasury-indexed hybrid adjustable-rate mortgage recorded 3.11 percent this week, the same from the previous week. A year ago, the average was at 2.82 percent.
Surprised yet? The Fed meeting which is set this week (June 13 and 14) is widely seen to reshape the trend, shifting the trajectory upwards and revamping a new range of rates away from the post-Brexit ripple. For hopeful refinancers who weren’t able to lock in last week, now could be the final chance you have of snagging a premium rate. If you are buying a home, securing a rate locktoday is adequate, before they take off a few days before or after Wednesday.
The Survey
The Primary Mortgage Market Survey® was established in April 1971 as the foremost source of mortgage trends in the regional and national level. Its data is utilized by both the public and the mortgage industry at large to gauge market conditions and evaluate mortgage loan options.
Survey Parameters
The survey results are gathered based on lenders’ most popular mortgage products – inclusive of 30 and 15-year FRMs as well as adjustable-rate mortgages. The first-lien prime conventional conforming home purchase mortgages (with an LTV of 80 percent) are considered primary basis for the survey. Meanwhile, the U.S. Treasury yields are used to index ARMs. Lenders are asked to provide the a) initial coupon rate and points, as well as b) ARM margins for this purpose.