Average 30-Year Rate Falls

The average fixed rate for 30-year mortgages fell to 5.62% during the week ending June 2 from 5.65% the previous week, according to Freddie Mac.In addition, the average fixed rate for 15-year mortgages inched down to 5.20% from 5.21%, according to Freddie Mac. A year previous, the average 30-year rate was 6.28% and the average 15-year rate was 5.63%. These relatively lower fixed rates may be only a short-term trend, Freddie Mac said. "Improvements in the job market and rising wages will likely put upward pressure on mortgage rates in the coming months," said Frank Nothaft, Freddie Mac vice president and chief economist. "However, the same growth in income will partially offset any rise in rates, enabling housing to continue to be a healthy industry. Given the low rates we experienced last month, we expect home sales in May will remain strong," he said. The average hybrid and adjustable mortgage rates last week rose slightly, according to Freddie Mac. Five-year, Treasury-indexed hybrids averaged 5.10% vs. 5.07% the previous week and one-year Treasury-indexed adjustable rates averaged 4.26% vs. 4.21% the previous week. A year ago -- before Freddie started tracking the average five-year rate -- one-year ARMs averaged 3.98%.