Mortgage Rates Remain at Highs for the Year

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing the average fixed-rate mortgage (FRM) remaining near their highest level of the year before bond yields began moving even higher Wednesday afternoon. The 30-year FRM averaged 3.87 percent, with an average 0.6 point for the week ending June 4, 2015, unchanged from the previous week. A year ago at this time, the 30-year FRM averaged 4.14 percent. Also this week, the 15-year FRM averaged 3.08 percent with an average 0.5 point, down from last week when it averaged 3.11 percent. A year ago at this time, the 15-year FRM averaged 3.23 percent.

"Mortgage rates were little changed for the week following mixed economic data before bond yields began moving higher Wednesday afternoon," said Len Kiefer, deputy chief economist of Freddie Mac. "Although real GDP growth was revised down to a negative 0.7 percent annualized rate, the Institute for Supply Management reported a modest growth in the manufacturing sector in May. If the Wednesday surge of treasury yields persists, the impact on mortgage rates is likely to result in a bout of affordability shock to many housing markets across the country."

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent this week with an average 0.5 point, up from last week when it averaged 2.90 percent. A year ago, the five-year ARM averaged 2.93 percent. The one-year Treasury-indexed ARM averaged 2.59 percent this week with an average 0.2 point, up from last week when it averaged 2.50 percent. At this time last year, the one-year ARM averaged 2.40 percent.