Skip to main content

Mortgage Rates Ease Back Slightly to 3.93 Percent Amid Fed Policy Uncertainty

Jun 20, 2013

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates moving slightly lower for the week as markets awaited the Federal Reserve's monetary policy announcement. This week, the 30-year fixed-rate mortgage (FRM) averaged 3.93 percent with an average 0.8 point, down from last week when it averaged 3.98 percent. Last year at this time, the 30-year FRM averaged 3.66 percent. The 15-year FRM this week averaged 3.04 percent with an average 0.7 point, down from last week when it averaged 3.10 percent. A year ago at this time, the 15-year FRM averaged 2.95 percent.   "Mortgage rates were relatively unchanged this week as market participants awaited the Federal Reserve's (Fed) monetary policy announcement," said Frank Nothaft, vice president and chief economist, Freddie Mac. "The Fed stated that economic growth has been expanding at a moderate pace and that labor market conditions have shown further improvement, although the unemployment rate remains elevated. It noted inflation has been running below the Fed's longer-run objective as well. As a result, the Fed will continue its bond-buying program at the current pace and maintain its highly accommodative monetary policy stance." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.79 percent this week with an average 0.5 point, the same as last week. A year ago, the five-year ARM averaged 2.77 percent. The one-year Treasury-indexed ARM averaged 2.57 percent this week with an average 0.4 point, down from last week when it averaged 2.58 percent. At this time last year, the one-year ARM averaged 2.74 percent. "The Fed also affirmed that the housing sector has strengthened further," said Nothaft. "For instance, single-family housing permits increased nearly two percentage points in May to an annualized pace of 649,000 homes, the most since May 2008. In addition, homebuilder confidence in June rose to its highest reading since March 2006."
About the author
Published
Jun 20, 2013
Co-Founder Mat Grella Terminated From NEXA

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024
Rocket's Tim Birkmeier To Retire

Birkmeier is bidding farewell after a 28-year career at Rocket Companies.

Mar 21, 2024
How NAR’s Settlement Impacts Homebuying

While the settlement's silver lining is that homes are expected to become more affordable, many uncertainties loom over the housing market.

Mar 19, 2024
NAR Reaches $418 Million Settlement

The association agreed to give home sellers the option of compensating agents.

Mar 15, 2024
U.S. Non-Bank Mortgage Lenders Surge Amid Industry Consolidation, Fitch Ratings Reports

As smaller players exit the market, scaled originators like UWM and PennyMac Financial dominate, but challenges persist with low origination volume and pressured margins amidst rising interest rates.

Mar 14, 2024