Long-Term US Mortgage Rates Drift Lower For a Third Consecutive Week

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.29 percent this week, with an average 0.4 point, down from last week when it averaged 6.30 percent.  A year ago, the 5-year ARM averaged 6.39 percent. 

One-year Treasury-indexed ARMs averaged 5.71 percent this week with an average 0.4 point, up from last week when it averaged 5.65 percent.  At this time last year, the 1-year ARM averaged 5.82 percent.

(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)

“Long-term mortgage rates continued to move lower for a third consecutive week, in part reflecting a moderation in core inflation,” said Frank Nothaft, Freddie Mac vice president and chief economist.  “In the statement accompanying their decision to leave the target federal funds rate unchanged, the Fed noted that core inflation had declined recently, though a ‘sustained’ moderation is still to be seen, and signaled that inflation risk continues to figure prominently in their policy decisions.

“Helping to ease some inflation concerns, May’s personal consumption expenditures report found that the core price measure had increased 1.9 percent for the year ending in May, within the 1 percent to 2 percent range with which the Fed is comfortable, and the lowest year-over-year rise in more than 3 years.”
 

                            PRIMARY MORTGAGE MARKET SURVEY RESULTS