Fixed Rates Fall Further

The average 30-year fixed mortgage rate fell from 5.57% to 5.53% over the seven-day period ended June 30, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate decreased from 5.16% to 5.12%, the average rate for five-year Treasury-indexed hybrid adjustable-rate mortgages rose from 5.05% to 5.06%, and the average rate for one-year Treasury-indexed ARMs climbed from 4.23% to 4.24%. Fees and points averaged 0.6 of a point for fixed-rate mortgages and five-year hybrid ARMs and 0.7 of a point for one-year ARMs. "With still little or no threat of inflation to be found, long-term mortgage rates this week had some breathing room, and that allowed rates to drift a little lower," said Frank Nothaft, Freddie Mac's chief economist. "Short-term rates, though, may be another matter, since the Federal Reserve is expected to continue raising its target for the federal funds rate at least a few more times this year." A year ago, the average 30-year and 15-year fixed rates were 6.21% and 5.62%, respectively, and the average one-year ARM rate was 4.19%, Freddie Mac said. Freddie Mac can be found online at http://www.freddiemac.com.