‘Benign’ inflation rate makes mortgage rates slip

The 30-year fixed-rate mortgage (FRM) averaged 5.38 percent this week, according to Freddie Mac.  It fell from last week’s 5.59 percent.  Last year at this time, the 30-year FRM averaged 6.42 percent.

The 15-year FRM this week averaged 4.89 percent, down from last week’s 5.06 percent.  A year ago at this time, the 15-year FRM averaged 6.02 percent.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs)were 4.97 percent this week, down from 5.17 percent last week and 5.89 percent last year.

One-year Treasury-indexed ARMs averaged 4.95 percent in comparison with 5.04 percent last week and 5.19 percent a year ago.

“Reports of benign inflation figures reversed the upward trend of mortgage rates this week,” said Frank Nothaft, Freddie Mac vice president and chief economist.

Stick out foot, aim gun, now shoot

Home construction leaped up 17.2 percent between April and May, largely because of a burst in the multifamily sector.  (Details in my next biweekly newsletter.)

Don’t start celebrating.