WASHINGTON – Long-term mortgage rates backed off from yearly lows this week, but still remain historically cheap.
The average for the 30-year loan rose slightly from 4.72% last week to 4.75% this week; while the average for the 15-year mortgage edged up from 4.17% to 4.20%, according to Freddie Mac.
ARM rates moved lower, with the average for the five-year ARM dipping from 3.92% last week to 3.89%; and the average for the one-year ARM moving from 3.91% to 3.82%, the lowest since May 2004.
"Mortgage rates were little changed this week amid preliminary signs that the expiration of the home-buyer tax credit in April may have led to a slowdown in new construction," said Frank Nothaft, chief economist for Freddie Mac.
"Starts on single-family homes fell 17% to an annualized pace of 468,000 units in May from April's 20-month high. In addition, permits on one-unit homes fell to the slowest pace since May 2009," he noted.
