

Without getting into too much technical detail, these are very short-term rates. Thus, when the Fed moved both rates to near zero as a reaction to the recession, rates on short-term instruments, such as six month treasuries, moved close to zero as well. Long-term rates moved down as well in reaction to the same forces that caused the Fed to lower short-term rates. Why is this important? This is important because the Fed is likely to increase short-term rates shortly.
And many are thinking that long-term rates, such as rates on home loans, will move up automatically. Well, rates on home loans have already moved up from their low levels of this winter in anticipation of this move. Therefore, when the Fed moves rates up, if the markets feel that this is the only move coming for the foreseeable future, long-term rates may not move at all. On the other hand, if the economy keeps getting stronger, long term rates will continue to move up regardless of what the Fed does. As a matter of fact, if the markets feel the Fed is not moving quickly enough, rates could move up even faster because nothing spooks the markets more than the specter of inflation.
The Markets. Rates on home loans were fairly stable last week. Freddie Mac announced that for the week ending June 25, 30-year fixed rates rose to 4.02% from 4.00% the previous week. The average for 15-year loans decreased to 3.21%. Adjustables were down slightly, with the average for one-year adjustables falling to 2.50% and five-year adjustables falling slightly to 2.98%. A year ago, 30-year fixed rates were at 4.14%, close, but still higher than today’s levels. Attributed to Len Kiefer, deputy chief economist, Freddie Mac — “Rates on home loans were little changed this week. Economic releases confirmed increasing strength in housing. Existing home sales increased 5.1 percent in May to an annual pace of 5.35 million units and new home sales increased 2.2 percent to an annual pace of 546,000 units. Buyers appear anxious to purchase homes before the expected increase in interest rates later this year. Given the tight inventory of homes for sale, a 5.1-month supply at the current sales pace, home prices are being bid up.” Rates indicated do not include fees and points and are provided for evidence of trends only. They should not be used for comparison purposes.
Updated June 26, 2015
Daily Value | Monthly Value | |
June 25 | May | |
6-month Treasury Security | 0.07% | 0.08% |
1-year Treasury Security | 0.29% | 0.24% |
3-year Treasury Security | 1.06% | 0.98% |
5-year Treasury Security | 1.70% | 1.54% |
10-year Treasury Security | 2.40% | 2.20% |
12-month LIBOR | 0.734% (May) | |
12-month MTA | 0.168% (May) | |
11th District Cost of Funds | 0.680% (Apr) | |
Prime Rate | 3.25% |


The number of trees on a lot can be a powerful influencer for home buyers. Eighteen percent of repeat buyers and 25 percent of buyers purchasing a new home said that being on a wooded lot or on a lot with many trees was very important to them, according to National Association of Realtors®’ home buyer and seller surveys. Home buyers in the South and in rural areas stressed the importance of having trees on their property. Twenty percent of home buyers in the South and 30 percent in rural areas thought that having a wooded lot or many trees was very important. If buyers can’t live with a wooded lot, they certainly at least want one nearby. Twenty-three percent of recent buyers surveyed felt that convenience to parks or recreational facilities was an influencing factor for their neighborhood choice. Living close to parks and recreational facilities was the most important to recent buyers aged 34 and younger as well as recent buyers aged 35 to 49. Home buyers may not only want trees for beauty but also for savings. At least three trees strategically placed on a lot can save an average household between $100 and $250 in annual energy bills, according to the U.S. Department of Energy. Source: National Association of Realtors®