Interest rates on home loans increased slightly for the week ending June 26, according to the latest survey from mortgage financier Freddie Mac.
The traditional 30-year fixed-rate mortgage averaged 6.45 percent, up from 6.42 percent a week earlier, while the 15-year fixed climbed just two basis points to 6.04 percent.
Freddie Mac chief economist Frank Nothaft said rates on ARMs, typically tied to short-term instruments, climbed a bit more because of market uncertainty leading up to the Fed’s interest-rate decision.
As expected, the Fed held its federal funds rate steady at two percent yesterday, citing looming inflationary concerns despite the ongoing housing distress.
The five-year treasury-indexed adjustable-rate mortgage averaged 5.99 percent, up from 5.89 percent last week.
The one-year treasury ARM also increased, averaging 5.27 percent, up from 5.19 percent a week earlier.
A year ago, the 30-year averaged 6.67 percent, the 15-year 6.34 percent, the five-year 6.30 percent, and the one-year 5.65 percent.
Home Sales Edge Up Slightly in May
Meanwhile, the National Association of Realtors said today that existing-home sales increased two percent in May to a seasonally adjusted rate of 4.99 million units, but were still 15.9 percent below year-ago levels.
The median existing-home price for all types of housing stood at $208,600 last month, down 6.3 percent from a year earlier when the median was $222,700.
Total housing inventory fell 1.4 percent in May to 4.49 million existing-homes for sale, representing a 10.8-month supply, down from 11.2 months in April.
(photo: shortfatkid)
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