Friday, June 18, 2010
Mortgage rates see little change as homebuyer tax credit expires
Freddie Mac reported that the 30-year fixed-rate mortgage averaged 4.75 percent with an average 0.7 point for the week ending June 17. The rate was up slightly from last week's 4.72 percent average. Last year at this time, the 30-year fixed-rate mortgage averaged 5.38 percent. (Freddie Mac)
"Mortgage rates were little changed this week amid preliminary signs that the expiration of the homebuyer tax credit in April may have led to a slowdown in new construction ," said Frank Nothaft, Freddie Mac vice president and chief economist.
Construction of single family homes has slowed, with construction permits grinding to the slowest pace since May 2009.
However, household balance sheets have been improving since first quarter 2009.