The average 30-year mortgage rate’s seventh consecutive decline during the week ending June 2 brought it to new lows not seen in Freddie Mac’s survey since the week ending Dec. 2.
The 30-year rate dropped to 4.55% with an average of 0.6 of a point during the most recent week. It was 4.46% with an average of 0.8 of a point during the week ending Dec. 2.
All fixed rates tracked by Freddie in the most recent week were relatively higher than a week ago.
Last week the average 30-year rate was 4.6% with an average of 0.7 of a point and a year ago it was 4.79% with an average of 0.8 of a point.
During the week ending June 2, the 15-year rate was 3.74% with an average of 0.7 of a point. The week previous, it was 3.78% with an average of 0.7 of a point.
The five-year hybrid Treasury indexed ARM rate remained at 3.41% during the most recent week, although with an average of 0.6 of a point compared to an average of 0.5 of a point the week previous.
The one-year Treasury ARM rate during the week ending June 2 rose to 3.13% with an average of 0.6 of a point from 3.11% with an average of 0.5 of a point the previous week.
In addition to weaker-than-expected housing and business activity statistics, Freddie Mac vice president and chief economist Frank Nothaft noted that consumer confidence readings have not looked so hot lately.
Dropping bond yields and stocks Wednesday had stabilized somewhat as of Thursday morning, although the 10-year Treasury yield that is a rough indicator of long-term mortgage rate direction remained slightly below the psychologically important 3% level.
Employment data that generally are considered influential when it comes to market direction are due this Friday.
