Average mortgage rates slide for second consecutive week

Mortgage rates dipped for the second consecutive week although 10-year Treasury yields started to rise again, according to Freddie Mac.

The 30-year fixed-rate mortgage averaged 4.54% for the week ending June 7, down from last week when it averaged 4.56%. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.89%.

"Homebuyers have taken advantage of the recent moderation in rates, which led to a 4% increase in purchase applications last week," Freddie Mac Chief Economist San Khater said in a press release. "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 15-year fixed-rate mortgage this week averaged 4.01%, down from last week when it averaged 4.06%. A year ago at this time, the 15-year fixed-rate mortgage averaged 3.16%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.74% this week with an average 0.4 point, down from last week when it averaged 3.8%. A year ago at this time, the five-year adjustable-rate mortgage averaged 3.11%.

The resolution of two political crises in Europe resulted in mortgage rates starting to move back up as investor gained some comfort and slowed their purchases of 10-year Treasury notes, according to Zillow.

"Mortgage rates rose late last week as political uncertainty around elections in Italy and Spain waned," Aaron Terrazas, Zillow's senior economist, said when that company released its own rate tracker on June 6. "With no major announcements or economic data releases this week, financial markets will likely focus on global political news and trade tensions following the recently announced U.S. tariffs on steel and aluminum."