Lower rates gave a boost to purchase loans
The average rate for a 30-year fixed rate mortgage decreased to 4.54% this week, the second consecutive weekly decrease.
Fannie Mae reported its Primary Mortgage Market Survey for the week ending June 7, 2018.
“Homebuyers have taken advantage of the recent moderation in rates, which led to a 4 percent increase in purchase applications last week,” said Sam Khater, Freddie Mac’s chief economist. “Although demand has remained steadfast against the backdrop of this year’s higher borrowing costs, it’s important to note that the growth rate of purchase loan balances has moderated so far this year – and particularly since March. This slowdown indicates that buyers are having difficulty stretching to keep up with the pace of home-price growth.”
The average rates:
- 30-year FRM – 4.54% with average 0.5 point, down from 4.56% a week earlier;
- 15-year FRM – 4.01% with average 0.4 point, down from 4.06% a week earlier;
- 5-year ARM – 3.74% with average 0.4 point, down from 3.80% a week earlier.
“While the very healthy job market continues to fuel interest in buying a home, the supply shortages in most markets are pushing prices higher and currently keeping sales at a standstill. Listings for new and existing homes need to increase in the months ahead to moderate price growth and reignite sales activity,” added Khater.
