The Washington Post

Mortgage rates fall after two-week climb

(Andrew Harrer/Bloomberg)

Mortgage rates turned lower this week, but mostly remain above last year’s levels, according to the latest report released Thursday from Freddie Mac.

After two consecutive weeks of gains, the 30-year fixed rate average dropped to 4.17 percent, with an average of 0.6 point. That’s down from 4.2 percent last week but still above the 3.93 percent average this time last year.

The 15-year average slipped, too, but only barely, from 3.31 last week to 3.3 percent, with an average 0.5 point. A year ago, it was 3.04 percent.

Meanwhile, the average five-year hybrid adjustable-rate mortgage dipped to 3.00 percent — with an average 0.4 point — down from 3.05 percent last week. The one-year hybrid climbed to 2.41 percent — with an average 0.4 point — from 2.40 percent a week earlier. One year ago, the five-year ARM averaged 2.79 percent and the one-year rate averaged 2.57 percent.

“Mortgage rates were down slightly for the week,” Frank Nothaft, vice president and chief economist for Freddie Mac, said in a statement. He pointed to a decline in new housing starts and building permits as likely culprits for the small slide in rates.

The turnaround mirrored a similar decline in mortgage application volume last week.

Coming on the heels of a 10.3 percent jump in the number of new applications the week prior, the volume dropped 9.2 percent this past week, essentially erasing the previous week’s gains, according to the Mortgage Bankers Association’s weekly survey.

Refinances were also down, off 13 percent from the week before, while applications for purchases dropped 5 percent.


J.D. Harrison covers startups, small business and entrepreneurship, with a focus on public policy, and he runs the On Small Business blog.



Success! Check your inbox for details. You might also like:

Please enter a valid email address

See all newsletters

Show Comments
Most Read



Success! Check your inbox for details.

See all newsletters

Your Three. Videos curated for you.
Play Videos
Be a man and cry
Deaf banjo player teaches thousands
Sleep advice you won't find in baby books
Play Videos
Drawing as an act of defiance
A flood of refugees from Syria but only a trickle to America
Chicago's tacos, four ways
Play Videos
What you need to know about filming the police
What you need to know about trans fats
Syrian refugee: 'I’m committed to the power of music'
Play Videos
Riding the X2 with D.C.'s most famous rapper
Full disclosure: 3 bedrooms, 2 baths, 1 ghoul
Europe's migrant crisis, explained
Next Story
Ilyce Glink and Samuel J. Tamkin · June 18, 2014

To keep reading, please enter your email address.

You’ll also receive from The Washington Post:
  • A free 6-week digital subscription
  • Our daily newsletter in your inbox

Please enter a valid email address

I have read and agree to the Terms of Service and Privacy Policy.

Please indicate agreement.

Thank you.

Check your inbox. We’ve sent an email explaining how to set up an account and activate your free digital subscription.