According to the Freddie Mac Primary Mortgage Market Survey® (PMMS®) for the previous week, long term interest rates were down for the third week in a row. However, the Weekly Mortgage Market Survey released by the Mortgage Bankers Association reported quite the opposite results with rates up sharply from a week earlier.

According to Freddie Mac, the 30-year fixed-rate mortgage (FRM) had an average interest rate of 6.63 percent with an average 0.4 point compared to 6.67 percent and 0.4 point the previous week. The 15-year FRM was down 4 basis points to 6.30 percent with points unchanged at 0.4.

The five-year Treasury-indexed hybrid adjustable rate mortgage (ARM) decreased slightly to 6.29 percent from 6.30. Fees and points were down to 0.4 from 0.5.

The one-year Treasury-indexed hybrid ARM increased, moving from 5.65 percent to 5.71 percent with fees and points unchanged at 0.4.

"Long-term mortgage rates continued to move lower for a third consecutive week, in part reflecting a moderation in core inflation," said Frank Nothaft, Freddie Mac vice president and chief economist. "In the statement accompanying their decision to leave the target federal funds rate unchanged, the Fed noted that core inflation had declined recently, though a 'sustained' moderation is still to be seen, and signaled that inflation risk continues to figure prominently in their policy decisions."

"Helping to ease some inflation concerns, May's personal consumption expenditures report found that the core price measure had increased 1.9 percent for the year ending in May, within the 1 percent to 2 percent range with which the Fed is comfortable, and the lowest year-over-year rise in more than 3 years."
 
Reference: FreddieMac's Weekly Primary Mortgage Market Survey® (PMMS®),