Although mortgage rates recently edged slightly higher, it was found that some rates reached new all-time lows once again during the week ending June 21.
The average rate for a 30-year fixed-rate mortgage fell to a record low 3.66 percent, down from 3.71 percent a week earlier, according to a report from Freddie Mac. Meanwhile, the rate for a 15-year FRM declined to 2.95 percent from 2.98 percent. It's believed that both global and domestic economic uncertainties were responsible for these dips.
"Treasury bond yields eased somewhat this week on some worsening economic indicators bringing mortgage rates back into record low territory," said Freddie Mac vice president and chief economist Frank Nothaft. "Industrial production fell in two of the last three months ending in May, and below the expected market consensus forecast."
Meanwhile, consumer sentiment also took a plunge in June, falling to the lowest level recorded this year, according to a survey conducted by the University of Michigan. This could have an impact on the financial safety and soundness of millions of Americans and subsequently affect future homebuying activity.
However, despite economic woes, the housing market did make some recent headway. Specifically, the construction rate of single-family homes increased in May for the third straight month to an annualized rate of 516,000 units, according to a report from the Census Bureau.