Freddie Survey Finds Slight Increase in Rates

The average interest rate for the 30-year fixed-rate mortgage loan gained three basis points from last week, the Freddie Mac Primary Mortgage Market Survey found. For the week ending June 17, the 30-year FRM averaged 4.75%; one week prior, it averaged 4.72%. Last year at this time, the 30-year FRM averaged 5.38%. "Mortgage rates were little changed this week amid preliminary signs that the expiration of the homebuyer tax credit in April may have led to a slowdown in new construction," said Frank Nothaft, Freddie Mac vice president and chief economist. "Nonetheless, household balance sheets have been improving over the past four quarters. In aggregate, households gained $6.3 trillion in net worth in the first quarter from a year ago, according to the Federal Reserve. In addition, homeowners have regained $1.1 trillion in home equity over the same time period." The 15-year FRM also gained 3 bps during the week to 4.2%. The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.89% this week, a drop of 3 bps, to its lowest point since Freddie Mac started tracking this rate in January 2005. The one-year Treasury-indexed ARM averaged 3.82% this week, down 9 bps to its lowest level since the week ending May 6, 2004 when it averaged 3.76%. Average points for all loans were at 0.7, except for the one-year ARM at 0.6.