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Freddie Mac; Bankrate: Mortgage rates continue to stay low

By Palm Beach Business.com

DELRAY BEACH — Disappointing economic news, including the weakest used-home sales report since November, continued to hold down mortgage rates.

Freddie Mac’s  Primary Mortgage Market Survey found the 30-year fixed-rate mortgage holding steady at an average of 4.50 percent with 0.8 point, while Bankrate’s national mortgage survey found rates falling to an average of 4.66 percent with 0.47 point, down from 4.71 percent a week earlier. Last week, Bankrate’s survey had rates moving higher, while Freddie Mac saw rates slipping slightly.

At 4.66 percent, payments on a 30-year loan would be $1,032.47, according to Bankrate.

The 15-year mortgage fell to 3.69 percent with 0.7 point,  up from 3.67 percent a week ago, according to Freddie Mac. Adjustable rate mortgages were mixed. Meanwhile, Bankarate had the 15-year falling to 3.83 percent with 0.37 point, down from last week’s 3.86 percent.

"Mortgage rates were virtually unchanged this week amid further indications of a soft housing market,” Freddie Mac Chief Economist Frank Nothaft said. “Although new construction on single-family homes ticked up in May from April, it was still below the overall pace set in 2010. Moreover, existing home sales fell 3.8 percent in May to the fewest since November 2010.”

Bankrate provided similar analysis but also factored in the European debt crisis, which pushed stocks down most of the week, and in turn pushed down yields on U.S. Treasury bonds. Mortgage rates are tied to government bond rates, particularly the 10-year bond.

As for the coming week, Bankrate’s panel of mortgage experts sees rates most likely holding steady; few expect rates to fall.