The 30-year fixed-rate mortgage average did not change over last week and the 15-year fixed-rate mortgage average edged up slightly over the prior week’s average, according to the data released by Freddie Mac in their latest survey on mortgage rate averages.
Mortgage rates commonly track Treasury yields. Treasury yields move inversely to Treasury prices. Therefore, when Treasury prices go up, yields and mortgage rates go down. Mortgage rates have slid for the last few months as the yields on Treasurys dropped because of economic uncertainty.
According to the most recent weekly survey on mortgage rates by Freddie Mac for the week ending Thursday, June 23rd, the average on the 30-year fixed-rate mortgage remained at 4.5%. That average remains unchanged from the prior week, though the rate was below the 4.69% posted the previous year.
The average for the 15-year fixed-rate mortgage edged up slightly to 3.69% when compared to the 3.67% average the prior week. That average is still well below the 4.13% average from the previous year.
In the same survey, the Five-year Treasury-indexed hybrid adjustable-rate mortgage average decreased to 3.25% when compared to the 3.27% average the week prior and the 3.84% average from the previous year.
The One-year Treasury-indexed adjustable-rate mortgage average edged up to 2.99%. That average is up from the 2.97% average posted the previous week, but that average far below the 3.77% average posted the previous year.
In order to obtain the rates on the 30-year and 15-year fixed-rate mortgages, borrowers were required to pay an average of 0.8 point for the 30-year and 0.7 point for the 15-year. To obtain the rate for the Five-year hybrid adjustable-rate mortgage, borrowers were required to pay an average a 0.6 point, while borrowers were required to pay a 0.5 point in order to obtain the rate for One-year adjustable-rate mortgage. A point is considered to be 1% of the mortgage amount charged as prepaid interest.