Mortgage rates continued to operate in the same low 6.8% range they have been in for most of the past two months since a 21 basis point spike in mid-April, according to Freddie Mac.
The 30-year fixed rate mortgage declined 1 basis point as of June 12 from one week prior, to 6.84%, the Freddie Mac Primary Mortgage Market Survey reported. A year ago at this time, it was at 6.95%.
Meanwhile, the 15-year FRM was 2 basis points lower, to 5.97% from the week of June 6. For the same week in 2024, it was at 6.17%.
“Mortgage rates have moved within a narrow range for the past few months and this week is no different,” said Sam Khater, Freddie Mac’s chief economist, in a press release. “Rate stability, improving inventory and slower house price growth are an encouraging combination as we celebrate National Homeownership Month.”
Since the 30-year FRM rose to 6.83% for the week of April 17, it has been between 6.81% and 6.86% with three exceptions: The weeks of May 1 and 8, when it was at 4.76%, and May 29, when the rate rose to 6.89%.
This stability in the 30-year FRM “continues to bring reassurance to those navigating today’s spring and summer homebuying market,” said Samir Dedhia, CEO of One Real Mortgage in a comment.
How other rate trackers look compared with one-week prior
Other rate measurements were mixed in their week-to-week changes.
The Mortgage Bankers Association’s Weekly Application Survey for the period ended June 6 reported a 1 basis point increase in the 30-year FRM to 6.93%.
Lender Price data on the National Mortgage News website as of 11 a.m. on June 12, put the 30-year FRM at 6.922%, compared with 6.902% one week earlier.
Zillow’s rate tracker put the 30-year at 6.91% at that time, down 1 basis point on the day and 8 basis points lower than the previous week’s average of 6.99%, although on June 5 at 11 a.m., it was also at 6.91%.
But Optimal Blue’s data is more indicative of the trends over the past few days. For June 5, it put the 30-year FRM at 6.813%. It rose over the next two business days to top out at 6.874% on June 9 before dropping back down to 6.835% as of June 11.
The 10-year Treasury yield was at 4.38%, 3 basis points lower than its Wednesday close of 4.41%. While flat with the 4.39% close on June 5, the following day, the yield spiked to 4.51%.
What drove mortgage rate movements this week?
Over the past week, intraday volatility in mortgage rates was driven by economic data releases, Kara Ng, Zillow senior economist, said in a June 11 blog post. “On June 6, a stronger-than-expected jobs report briefly pushed rates higher, while the June 11 [Consumer Price Index] report showing slowing inflation nudged them lower,” she wrote.
Zillow economists are among those that expect the 30-year to finish the year near the mid-6% point, as the economy “slightly” cools.
“However, inflation pressures from de-globalization and elevated fiscal deficits will likely limit any significant drop,” Ng said.
“Recent political chatter around privatizing Fannie Mae and Freddie Mac has also introduced additional uncertainty,” Ng continued. “While no official policy shift has happened yet, the possibility could exert upward pressure on mortgage rates as investors seek higher returns to offset increased risk.”
