Interest rates finally inched down this week after rising for much of the last month, according to the latest report from mortgage financier Freddie Mac.
“Mortgage rates reversed their three-week rise, falling this week after the release of the latest Federal Reserve’s (Fed) policy statement that it expects inflation to moderate later this year,” said Frank Nothaft, Freddie Mac chief economist.
The traditional 30-year fixed-rate mortgage averaged 6.35 percent for the week ending June 3, down from 6.45 percent a week earlier.
The 15-year also improved, slipping to 5.92 percent from 6.04 percent last week.
Adjustable-rate mortgages joined the party as well, with the average five-year Treasury ARM falling to 5.78 percent from 5.99 percent.
The one-year Treasury ARM shed ten basis points to average 5.17 percent during the week.
A year ago, the 30-year averaged 6.63 percent, the 15-year 6.30 percent, the five-year 6.29 percent, and the one-year 5.71 percent.
Despite the slight improvement in rates this week, Nothaft noted that consumer affordability actually diminished thanks to median home price gains in April.
“However, even with the recent erosion in affordability, homes were still more affordable in April than during the 2005-2007 period of skyrocketing house prices,” he said.
You would hope so…
(photo: shuttercat7)
