WASHINGTON — Average U.S. mortgage rates showed only modest changes in the latest weekly survey, remaining near the mid-6% range as borrowing costs continued to influence housing market activity, according to data released by Freddie Mac.
Freddie Mac said on June 11 that the average rate on a 30-year fixed-rate mortgage rose to 6.52% from 6.48% a week earlier. The average rate on a 15-year fixed-rate mortgage increased to 5.84% from 5.79% during the same period. Both rates remained below levels recorded a year earlier.
“The 30-year fixed-rate mortgage averaged 6.52% this week,” Freddie Mac Chief Economist Sam Khater said in a statement. “Stronger employment momentum has helped existing home sales reach a five-month high.”
The weekly survey, widely followed by lenders, homebuyers and economists, tracks conventional, conforming home-purchase loans for borrowers with strong credit profiles and substantial down payments, Freddie Mac said.
The latest figures reflect a market that has seen relatively small week-to-week movements in mortgage rates in recent months. Earlier in June, the average 30-year mortgage rate had declined to 6.48% before edging higher in the most recent survey. Freddie Mac reported that the corresponding 15-year rate also moved slightly higher after a prior decline.
Housing affordability remains a key concern for prospective buyers. A Reuters poll published last week found that economists expect mortgage rates to remain above 6% for an extended period, contributing to subdued housing activity despite some signs of demand returning to the market.
Industry data cited by Freddie Mac and other housing groups have indicated that some buyers are continuing to enter the market despite elevated borrowing costs. Existing home sales recently reached a five-month high, according to Freddie Mac, while housing market participants have reported increased interest from buyers adjusting to current rate levels.
Separately, the National Association of Home Builders reported weaker builder sentiment in June, citing mortgage rates and affordability pressures among factors affecting demand.
As of mid-June, mortgage rates remained below year-earlier averages but continued to fluctuate within a narrow range. Freddie Mac's next weekly survey is expected to provide an updated measure of borrowing costs as the summer homebuying season continues.
