WASHINGTON Mortgage rates declined again last week continuing their up-and-down motion amid recent strong homes sales data for June, according to Freddie Mac.
The average for the 30-year mortgage dipped to 4.31% this week from 4.37% last week; while the average for the 15-year, fixed-rate loan fell to 3.39% from 3.41%.
ARM rates inched downward, with the average for the five-year ARM dipping to 3.16% from 3.17%; and the average for the one-year ARM slipping to 2.65% from 2.66%.
Freddie Mac Chief Economist Frank Nothaft said the latest decline should help alleviate concerns about a potential slowdown in the housing market. Mortgage rates rose sharply late last month on concerns about the future of the Federal Reserve’s stimulus program, concerns that have since abated.
“Thus far, existing home sales for June were the second highest since November 2009 and new home sales were the strongest since May 2008,” Nothaft said. “In addition, the low inventories of homes for purchase are putting upward pressure on house prices.”
