30-Year Rate Hits 14-Month Low

The average 30-year fixed mortgage rate fell from 5.62% to 5.56% over the seven-day period ending June 9, its lowest point since April 1, 2004, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate decreased from 5.20% to 5.14%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages fell from 5.07% to 5.01%, and the average rate for one-year Treasury-indexed ARMs declined from 4.26% to 4.21%. Fees and points averaged 0.5 of a point for 15-year fixed-rate mortgages and five-year hybrid ARMs, 0.6 of a point for 30-year FRMs, and 0.7 of a point for one-year ARMs. "The May employment report came in at less than half of what was expected last month, which pushed bond yields -- and mortgage rates -- down further," said Frank Nothaft, Freddie Mac's chief economist. "Consequently, markets are now speculating whether the [Federal Reserve Board] will continue raising rates at the same pace that it has been, or ... begin to moderate the frequency of its actions." A year ago, the average 30-year and 15-year fixed rates were 6.30% and 5.67%, respectively, and the average one-year ARM rate was 4.14%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.