Average fixed mortgage rates were slightly lower this week, remaining at historically affordable levels as sales of new homes are running about half the rate of a healthy housing market.
The 30-year fixed-rate mortgage averaged 4.17 percent, down from 4.20.
Mortgage rates are about a quarter of a percentage point higher than they were at the same time last year. A year ago at this time, the 30-year fixed rate averaged 3.93 percent.
The U.S. Commerce Department reported this week that the pace of U.S. home construction fell in May. Builders started work at a seasonally-adjusted yearly rate on 1.01 million homes, down 6.5 percent from 1.07 million in April.
Meanwhile, the Federal Reserve said yesterday that the are no plans to raise its benchmark short-term rate from its “near zero” position. That likely won’t happen until next year.
Freddie Mac surveys lenders across the country between Monday and Wednesday each week to calculate average mortgage rates,
Here is Freddie’s weekly rundown:
30-year fixed-rate mortgage (FRM) averaged 4.17 percent, with an average 0.6 point for the week ending June 19, 2014, down from last week when it averaged 4.20 percent. A year ago at this time, the 30-year FRM averaged 3.93 percent.
15-year FRM this week averaged 3.30 percent, with an average 0.5 point, down from last week when it averaged 3.31 percent. A year ago at this time, the 15-year FRM averaged 3.04 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.00 percent this week, with an average 0.4 point, down from last week when it averaged 3.05 percent. A year ago, the 5-year ARM averaged 2.79 percent.
1-year Treasury-indexed ARM averaged 2.41 percent this week, with an average 0.4 point, up from last week when it averaged 2.40 percent. At this time last year, the 1-year ARM averaged 2.57 percent.