Depending on which rate tracker you look at, mortgage rates decreased, moved sideways or increased on a week-over-week basis.
Since June 1, the yield on the benchmark 10-year Treasury moved up 18 basis points to close at 3.78% on Wednesday.
But the spreads remain abnormally wide, and that likely contributed to the divergent movements among different trackers that use different methodology. The normal spread between the 10-year Treasury and the 30-year fixed-rate mortgage is between 150 and 200 basis points; no matter which tracker is used, they currently are in the 300 basis point range.
Freddie Mac's Primary Mortgage Market Survey, which takes in rates on submissions to its Loan Product Advisor automated-underwriting system, reported an 8 basis point decline in the 30-year fixed-rate mortgage to 6.71% for June 8
The 15-year FRM fell to 6.07% from 6.18% week-to-week but rose from 4.38% on a year-over-year basis.
"Mortgage rates decreased after a three-week climb," said Sam Khater, Freddie Mac's chief economist, in a press release. "While elevated rates and other affordability challenges remain,
Optimal Blue, a division of Black Knight, reported the 30-year conforming mortgage at 6.746% as of June 7, based on data submitted to its product and pricing engine. That compared with 6.719% on May 31; on June 1 it fell to 6.649% before tracking higher over the following days.
Zillow's rate tracker, based on offers, was at 6.61% on Thursday morning, unchanged from the morning of June 1, and down one basis point from the previous week's average.
"After some mild oscillations, mortgage rates are right where they were this time last week as investors await more conclusive signs of progress on inflation and monetary policy," said Orphe Divounguy, senior macroeconomist at Zillow Home Loans, in a statement issued Wednesday night. "Last week's
But the services sector slowed down in May, according to the Institute for Supply Management purchasing managers' index report. The price component had its weakest reading in two years, which is likely to be seen in the next Consumer Price Index reading.
"Cooling inflation and a general economic slowdown would put downward pressure on long-term interest rates like the 10-year Treasury yield," Divounguy said.
On Wednesday, the Mortgage Bankers Association reported
"The housing market has gotten off to a slow start this summer due to higher mortgage rates, low inventory and economic uncertainty," a Thursday morning statement from MBA President and CEO Bob Broeksmit said. "The labor market continues to be exceptionally strong, which could bring more buyers back into the market once rates move away from their recent highs."
Divounguy forecasts that mortgage rate movement should remain muted over the next seven days, "but upward bias remains as investors await next week's CPI inflation report and Federal Open Market Committee forward guidance."
