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On the radar: Declines for fixed rate mortgages may be bottoming in June

Freddie Mac reported the 30-year fixed rate for a mortgage at 3.82% in the June 13 week, the same as in the prior week.  It remained the lowest since 3.78% in the September 14, 2017 week. This halted six weeks of declines as 10-year bond yields fell sharply as markets turned risk-adverse. The 15-year fixed rate nipped 2 basis points lower to 3.26% in the June 13 week, down for a seventh straight week. It was the lowest since 3.24% in the week of November 16, 2017. The 5/1-year ARM rate was down 1 basis point to 3.51% and the lowest since 3.46% in the week of January 18, 2018. Signs that recent plunges in mortgage interest rates may be bottoming out should help encourage those consumers waiting to see just how low rates may go to act sooner.

The month-to-date average for a 30-year fixed rate mortgage is 3.82%, the lowest since 3.81% in September 2017. The 15-year fixed rate hasn’t been this low since 3.20% in October 2017. The 5/1-year ARM was at its lowest since 3.47% in January 2018.

With supplies of homes relatively thin, rates this low are going to encourage building to meet demand as well as stimulate sales of existing units.

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