Real Estate News

Freddie Mac: Mortgage rates basically still same on penultimate June week

Published: 30 Jun 2017

With the mortgage rate data for the week of June 22 up, Freddie Mac noted a very minor dip in 15 and 30-year fixed-rate mortgages, as well as 5/1 Adjustable Rate Mortgages. All of these saw the average rates drop by approximately .01 of a percentage point in the span of a week, pointing to an overall sense of stability. This result is also notable for the consistency of the slight decline over all three categories.

This is somewhat different from the patterns seen in earlier weeks, at least according to this source. For example, the June 15 rates for both 15 and 30-year FRMs increased by .02 percent from the previous week. During this time, the ARM rate increased by .04 percent, instead of the uniform rate changes seen more recently.

Meanwhile, the Mortgage Bankers Association recently forecast an overall decline for this year's "multifamily mortgage originations," based on a total figure of $245 billion for multifamily lending. Commercial Real Estate Research Vice President, Jamie Woodwell, had a strong reading of this current data, calling it "positive".

"Commercial and multifamily market activity has downshifted at the start of 2017," Woodwell said. "Markets continue to move forward, but the rapid increases in property values, transaction volumes and other fundamentals that characterized the post-recession period have given way to more regular changes tied to the economy as well as changes in supply and demand.

The statement combined the multifamily mortgages with commercial ones and said that the total combined amount of these originations will be $478 billion by the start of 2018, while the debt of these two categories continues to grow year-over-year.

June was a notable month for rate changes in another field, as the Federal Reserve raised interest rates this month, according to CNBC.