Mortgage Rates Fall For Third Week

(RTTNews) - U.S. mortgage rates decreased for a third week in a row amid signs of cooling inflation and expectations of a future Fed rate cut, the Freddie Mac Primary Mortgage Market Survey data showed Thursday.

The 30-year fixed rate mortgage averaged 6.87 percent for the week ending June 20 versus 6.95 percent in the previous week. In the same week last year, the rate was 6.67 percent.

The rate was the lowest since early April, when it was 6.82 percent. The 15-year fixed rate mortgage averaged 6.13 percent compared to 6.17 percent in the previous week. A year ago, the rate was 6.03 percent.

"Mortgage rates fell for the third straight week following signs of cooling inflation and market expectations of a future Fed rate cut," Sam Khater, Freddie Mac's chief economist, said. "These lower mortgage rates coupled with the gradually improving housing supply bodes well for the housing market."

Earlier this month, the Fed left interest rates unchanged and projected just one rate cut for the rest of the year.

Elsewhere on Thursday, the Commerce Department data showed that U.S. housing starts tumbled to a near four-year low in May, mainly due to a steep drop in residential construction.