Mortgage Rates Decline Despite Fed's Increases

WASHINGTON–The Fed may be pushing rates up, but the 30-year mortgage rate average has declined to new lows for 2017.
According to Freddie Mac data:

• 30-year fixed-rate mortgage (FRM) averaged 3.88% with an average 0.5 point for the week ending June 29, 2017, down from one week earlier when it averaged 3.90%. A year ago at this time, the 30-year FRM averaged 3.48%

• 15-year FRM this week averaged 3.17% with an average 0.5 point, the same as one week earlier. A year ago at this time, the 15-year FRM averaged 2.78%

• Five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.17% as of June 29, with an average 0.5 point, up from one week earlier when it averaged 3.14%. A year ago at the same time, the five-year ARM averaged 2.70%

"The 30-year mortgage rate fell two basis points to 3.88% this week," says Sean Becketti, chief economist, Freddie Mac, in a statement. "However, the majority of our survey was conducted prior to Tuesday's sell-off in the bond market, which drove Treasury yields higher. Mortgage rates may increase in next week's survey if Treasury yields continue to rise.