mortgage rates retreated after hitting a seven month high last week, according to the latest survey from mortgage financier Freddie Mac. The popular 30-year fixed averaged 5.38 percent during the week ending June 18, down from 5.59 percent a week ago, but still a half-point higher than its all-time low of 4.78 percent in April. A year ago, 30-year fixed mortgages averaged 6.42 percent, so rates are still historically very low. The 15-year fixed slipped to 4.89 percent from 5.06 percent, and remains much lower than its year-ago average of 6.02 percent. “Reports of benign inflation figures reversed the upward trend of mortgage rates this week,” said Frank Nothaft, Freddie Mac chief economist. “The producer price index rose only 0.2 percent in May, roughly a third less than the consensus forecast and the consumer price index increased by just 0.1 percent. Moreover, the 12-month drop of 5.0 percent in producer prices was the largest since 1949 and the 1.3 percent yearly decrease in consumer prices the biggest since 1950. Adjustable-rate mortgages saw some relief as well, as the five-year slipped to 4.97 percent from 5.17 percent, and the one-year ARM dipped to 4.95 percent from 5.04 percent. A year ago, the five-year averaged 5.89 percent and the one-year stood at 5.19 percent. The interest rates above are good for conforming loan amounts with a down payment of 20 percent; jumbo loans continue to price about a point higher. “It’s still too early to tell whether the decline in housing market activity has hit bottom yet. The prior three-week run up in rates for 30-year fixed mortgages, which amounted to over 0.75 percentage points, is starting to slow homebuyer demand, at least temporarily.” “In addition, although new construction of one-family homes rose for the third consecutive month in May by 7.5 percent, and the National Association of Home Builders reported that homebuilder assessments of market conditions in June and for the remainder of this year had weakened.” Debt Consolidation Home Equity

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