Interest rates on home loans saw mild improvement during the week as inflation worries eased, according to the latest survey from mortgage financier Freddie Mac.
“Mortgage rates moved lower this week as a drop in commodity prices eased market concerns over inflation pressures,” said Frank Nothaft, Freddie Mac chief economist.
“For instance, the Department of Energy reported that gasoline prices were the lowest since the end of May, and oil prices were at levels not seen since early May.”
At the same time, he noted that the supply for existing single-family homes rose to 11 months in June, though the supply of new homes dipped for the second straight month.
The average rate on a 30-year fixed-rate mortgage was 6.52 percent for the week ending July 31, down from 6.63 percent a week earlier.
The 15-year saw similar improvement, falling 11 basis points to 6.07 percent from 6.18 percent.
Adjustable-rate mortgages also got in on the action, with the average five-year ARM sliding nine basis points to 6.07 percent and the one-year shedding nearly a quarter-point to fall to 5.27 percent from 5.49 percent.
A year ago, the 30-year averaged 6.68 percent, the 15-year 6.32 percent, the five-year 6.29 percent, and the one-year 5.59 percent.
Freddie Mac’s weekly survey utilizes data from conforming loan amounts with a loan-to-value of 80 percent.
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