BOND YIELDS PUSH MORTGAGE RATES TO HIGHEST LEVEL IN SEVEN MONTHS

McLean, VA – Freddie Mac (NYSE:FRE) today released
the results of its Primary Mortgage Market Survey® (PMMS®) in which the 30-year
fixed-rate mortgage (FRM) averaged 5.59 percent

Mortgage rates followed the increase in bond yields this
week as the May employment report showed that the economy lost fewer jobs than
the market consensus had expected,” said Frank Nothaft, Freddie Mac vice
president and chief economist.

 

“Higher mortgage rates are slowing refinancing activity but
not demand for home purchases. Over the three-weeks ending June 5th, interest
rates for 30-year fixed-rate mortgages rose nearly one-half of a percentage
point. As a result, conventional mortgage applications for refinance fell each
week during this period while applications for home purchases consecutively
rose, according to the Mortgage Bankers Association.”

 

 

 

Summary of Survey Results

 

Chicago
is in the N. Central Region