Weekly Mortgage Rates Ease After Two Weeks of Gains

Mortgage Rates
Tony Dejak/AP
WASHINGTON --Average U.S. rates on fixed mortgages eased slightly this week, remaining near historic lows.

Mortgage buyer Freddie Mac said Thursday the average rate for a 30-year loan declined to 4.17 percent from 4.20 percent last week. The average for the 15-year mortgage fell to 3.30 percent from 3.31 percent.

Rising prices and higher interest rates beginning in mid-2013 have made homes less affordable for would-be buyers. At the same time, a limited supply of homes is available to buy. Sales of new homes are running about half the rate of a healthy housing market.

Reflecting the struggle for many Americans to afford new houses, data issued Tuesday by the Commerce Department showed that the pace of U.S. home construction slipped in May. Builders started work at a seasonally adjusted yearly rate on 1.01 million homes, down 6.5 percent from 1.07 million in April.

And U.S. homebuilders are feeling more confident about the housing market but don't think it is healthy yet, the National Association of Home Builders/Wells Fargo builder sentiment index for June showed Monday.

Mortgage rates are about a quarter of a percentage point higher than they were at the same time last year. The increase in rates over the past year or so was driven in part by speculation that the Federal Reserve would reduce its bond purchases, which have helped keep long-term interest rates low. Indeed, the Fed has announced five declines in its monthly bond purchases since December because the economy appears to be steadily healing. But the Fed has no plans to raise its benchmark short-term rate from record lows.

After the central bank ended a two-day policy meeting, Fed Chair Janet Yellen sent the message Wednesday that the economy still isn't healthy enough to grow at a consistently strong pace without the Fed's help. Yellen made clear that despite a steadily improving job market and signs of creeping inflation, the Fed sees no need to raise short-term interest rates from record lows anytime soon.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country between Monday and Wednesday each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
  • The average fee for a 30-year mortgage was unchanged from a week earlier at 0.6 point. The fee for a 15-year loan also was steady, at 0.5 point.
  • The average rate on a one-year adjustable-rate loan ticked up to 2.41 percent from 2.40 percent. The average fee remained at 0.4 point.
  • The average rate on a five-year adjustable mortgage fell to 3.00 percent from 3.05 percent. The fee was stable at 0.4 point.

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Yup James

If anybody here is interested in learning how to trade working from home I can suggest a website to you that I recently found and become a member to. The name of the website is Bionic Traders, I believe you can find them on Google. I never traded before in my life and now I love doing it thanks to Bionic Traders, their way of teaching how to trade made it very easy for me to learn.

June 20 2014 at 1:32 AM Report abuse rate up rate down Reply
mac2jr

"It's not the rates but home prices have more than doubled for no reason --- "

The reasons are simple:

1) .. Real Estate Agents get 6% commission, and there are dozens of other expenses involved in the buying and selling of a home.

2) .. Lack of good Inventory, where needed, has allowed the sellers to sell at any price he or she wanted to, within limits.

3) .. Compound Interest takes a $1.00 Bill and turns it into $3.50 in 30-years, and thus the longer a home is on the market, the higher the cost.

4) .. Inflation, wages (almost), and other items have risen in price at about 4% per year for decades, and thus people have (almost have) the buying power to pay the 4% per interest on the price of a home, per year.

June 19 2014 at 8:48 PM Report abuse +1 rate up rate down Reply
The Paterfamilia

Think about this... If Banks believed like "We The People" do when signing a Mortgage, that the Home iself is a GOOD INVESTMENT, enough so to pledge upon your Death PLUS the value of the Home AND the loss of all its EQUITY, all the Insurance and Assurance that the debt will be paid... Why, then should a Barrower need to place ubove all that another say 20% above his integrity already on the line?

A Business by definition is supposed to make Profit from the assumption of a RISK... That's the reason they say we "Bailed Out" the Banks in the first place... Without Risk, the Banks just become sheltered Fascist Government Holding Companies in a Facade of Debt Bondage and Human Slavery... PEACE!!! ;>D

June 19 2014 at 7:07 PM Report abuse +1 rate up rate down Reply
The Paterfamilia

Actually, the Term "Mortgage" in legalies translates into "Death Pledge" or upon ones Death... So, regarding "any person who can sign their name" actually implies they are indeed "alive" and therefore meet and exceed the original qualifications of all Mortgages...

Greed, has reduced the value of human life in our current financial system so much that I for one cannot say, " we are able to trust that they really know what they are doing" or that " otherwise I would think its only time before the housing market hits a double bottom.."... I have to say, because of THEM (the Banks) and their GREED that the housing market will hit a "double bottom"... TRUTH-

June 19 2014 at 6:49 PM Report abuse +1 rate up rate down Reply
rustysurfboardz

It's amazing that big banks are being allowed to manipulate a market that they nearly destroyed just a short time ago. There is a huge amount of inventory that has already been foreclosed on, yet sits there without being put on the market in order to create a real shortage of available homes. These are the same banks that took huge tax write-offs on the properties and are now manipulating the market to make a huge gain when they resale the properties. I for one am just really glad that we are able to trust that they really know what they are doing, (just like when they thought it was a good idea to give a loan to any person that could sign their name..), otherwise I would think its only time before the housing market hits a double bottom..

June 19 2014 at 6:00 PM Report abuse +2 rate up rate down Reply
The Paterfamilia

If they want Houses to start selling again the Rates will have to reflect the same Stimulus that the Federal Reserve is giving to the Banks!!! Those Bail Outs they got are not being reflected to "WE THE PEOPLE", not even a "TRICKLE DOWN" that can be appreciated is going to the Home Owner!!!

To those whom have been "FORGIVEN A LOT" must also show the "THE MOST FORGIVENESS".... They have been printing cash and GIVING it to the Bankers (BILLIONS) and on top of that the PRIME RATE is next to zero, but only for the BANKERS!!! Yet the Banks have only passed on Mortgage Rate INCREASES while INCREASING qualification requirements to potential Loan Applicants to buy the Homes?

All at the same time, they try to pass on the BLAME of a slumping Home Market on current Mortgage Holders for less than meager Value Increases in the very Product they expect folks should want to own? The bottle neck is in the Institutional GREED of the Banks and if they don't act real soon another Season of Home Sales will be lost that will QUICKLY Reignite the Economic Slump.... WAKE UP PEOPLE!!! ;-)

June 19 2014 at 5:11 PM Report abuse +2 rate up rate down Reply
jdykbpl45

Obama: you have to have a real job to buy a house.

June 19 2014 at 5:04 PM Report abuse +2 rate up rate down Reply
moretrorun

Not to fret. The stage is set.
Interest rates are headed to much higher, healthier rates albeit slowly due to Wall Street manipulation, the investment market's equivalent of price controls, the very item capitalists preach against.
In the meantime, prices are still too high to be affordable despite the low rates. Price controls again by the banks and real estate industry.

June 19 2014 at 3:44 PM Report abuse +1 rate up rate down Reply
mac2jr

American businessmen sent our jobs to China, and now we are seeing the result. When there are NO Americans making flooring, carpet, wood, tile, paint, appliances, wire, plumbing items, insulation, electrical components, heating and cooling systems, fans, vents, insulation, curtains, windows, doors, fireplaces, cabinets, closet components, lighing components, alarm systems, carpenter tools, plumbing tools, electrical tools, painting tools, tile laying tools, texture coating tools, trucks, wagons, wheelborrows, landscaping tools, heavy equipment, televisions, home office items, etc., there are NO PEOPLE EARNING MONEY in AMERICA that can afford to BUY A HOUSE....

Wake UP America, WAKE UP....

June 19 2014 at 2:32 PM Report abuse +4 rate up rate down Reply
1 reply to mac2jr's comment
rustysurfboardz

While I agree with some of your post, you can't blame the businesses for everything. We as Americans want to be able to purchase any and everythiing as cheap as possible. It can be built in foreign countries and shipped here for a small fraction of what it would cost to be made here. We can't have it both ways. You can't expect to pay someone $25 an hour in a production environment and then sell it for $5 bucks at Wal-Mart. I completely get where you are coming from, but I don't think there is anything that can be done at this point in time.

June 19 2014 at 6:00 PM Report abuse -1 rate up rate down Reply