Mortgage rates fell to one of the lowest levels of the year in the most recent week, following a short-lived rebound, housing finance provider Freddie Mac said Thursday.
The 30-year fixed-rate mortgage averaged 3.90% in the June 22 week. The 15-year fixed-rate mortgage averaged 3.17%, and the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.14%. Each product declined one basis point during the week.
Those rates don’t include fees associated with obtaining mortgage loans.
Mortgage rates are keeping close pace with U.S. Treasury yields. The 10-yearTMUBMUSD10Y, +0.72% which recently fell to its lowest since the November election, is still hovering near 2017 lows.
The benchmark 30-year fixed-rate mortgage, meanwhile, is just one basis point above its lowest mark for 2017.
At the end of last year, many economists and analysts forecast mortgage rates averaging about 4.50% throughout 2017. So far this year, they’ve averaged 4.08%.
That’s helping make housing more affordable. Lean inventory in the market pushed median prices to the highest on record in May, the National Association of Realtors reported Wednesday.