Rates Remain Low, Relatively Stable

The average rate for a 30-year fixed-rate mortgage increased slightly while the 15-year rate inched down to another survey-record low in Freddie Mac's Primary Mortgage Market Survey for the week ending June 3. "The economy grew at a slower rate than originally reported in the first three months of the year," according to the Bureau of Economic Analysis, "which suggests inflation will remain tame near-term," said Freddie Mac chief economist and vice president Frank Nothaft, noting that this development kept rates at or near the historic lows they have been flirting with of late. The average 30-year FRM rate was 4.79%, up slightly from the previous week's 4.78% but down from 5.29% a year ago. Also in the latest week average fees for a 30-year mortgage, which have not risen above 0.7% in some time, edged up a bit to 0.8%. Average fees for other loan types tracked by Freddie Mac's survey-15-year FRMs, five-year Treasury indexed hybrid adjustable-rate mortgages and one-year Treasury ARMs-were 0.7 during the week ended June 3. The average 15-year rate during that week was 4.20%, down from 4.21% a week earlier but down from 4.79% a year ago. This is the second consecutive week this rate has been at a record low. Freddie has been tracking the 15-year rate since August 1991. The average five-year hybrid Treasury ARM rate in the most recent week was 3.94%, down from 3.97% the previous week and 4.85% a year ago. The average one-year Treasury ARM rate was 3.95%, the same as it was the previous week, remaining at a low not seen since the week ending May 27, 2004 when the average rate for this loan type was 3.87%. A year ago the average one-year Treasury ARM rate was 4.81%.