The 15-year fixed-rate average slipped to 3.05 percent with an average 0.6 point. It was 3.07 percent a week ago and 3.25 percent a year ago.
Hybrid adjustable rate mortgages were mixed. The five-year ARM average fell to 2.88 percent with an average 0.5 point. It was 2.89 percent a week ago and 2.96 percent a year ago.
The one-year ARM average rose to 2.51 percent with an average 0.4 point. It was 2.48 percent a week ago.
“Mortgage rates were little changed this week amid positive housing news,” Len Kiefer, Freddie Mac deputy chief economist, said in a statement.
“Housing starts surged 20.2 percent to a seasonally adjusted pace of 1.14 million units in April, the highest level since 2007. As home-buying season moves into full swing, home builders remain positive about home sales in the near future. Although the NAHB housing market index slipped 2 points to 54 in May it is still above 50, indicating that on balance builders remain optimistic about housing markets.”
Meanwhile, rising rates have cooled demand for home loans as mortgage applications fell again this week, according to the latest data from the Mortgage Bankers Association.
The market composite index, a measure of total loan application volume, decreased 1.5 percent. The refinance index was essentially flat, inching up 0.3 percent from the previous week. The purchase index dropped 4 percent.
The refinance share of mortgage activity accounted for 52 percent of all applications.
“Mortgage rates increased last week, and Treasury rates increased to a recent high at mid-week before falling at the end of the week,” Mike Fratantoni, MBA’s chief economist, said in a statement.
“Overall purchase activity fell for the week, along with conventional refinance volume, but government refinance volume increased. The level of purchase applications remained 11 percent higher than the same week last year, but the drop this week may indicate borrowers being wary of the recent run up in mortgage rates.”