Mortgage rates fall for third straight week in June. Should you refinance?

Mortgage rates have fallen for the third straight week this June, according to the latest data from Freddie Mac.

Thirty-year Fixed Rate Mortgages (FRM) clocked in at 6.87% on June 20, down from 6.95% the week before. Fifteen-year FRMs were down to 6.13% from 6.17%.

"Mortgage rates receded from the highs seen in April and early May; moderating rates along with modest improvements in housing inventory should provide some respite to potential homebuyers," Freddie Mac wrote in its latest U.S. Economic, Housing and Mortgage Market Outlook.

Current mortgage rates in Westchester , Rockland and Putnam counties were, on average, 6.88% for a 30-year FRM, 6.06% for a 15-year FRM, and 7.33% for a five-year Adjustable Rate Mortgage, according to data published by Realtor.com .

"Mortgage rates have been volatile over the past month, hovering between 6.9% and 7.2%; and they are still relatively high, deterring home sales," Freddie Mac said. "Despite robust housing demand driven by first-time homebuyers, we expect home sales to remain muted."

Local real estate: What kind of house will $800K get you in Westchester, Rockland, Putnam? We checked

As these rates have declined, national housing inventory remains low, although new home inventory is at the "highest level it’s been since January 2008," the report reads.

Price growth for homes continued to be strong year-over-year through early spring, with New York state among the top three in the nation for annual house price appreciation at 10.9%. That growth can be attributed to what Freddie Mac called depleted inventory and resilient demand, which "continues to exert upward pressure on home prices."

In Westchester, the median listing price was $749,748 in May, up 14.73% year over year. In Rockland, that median price was $832,450, up over 11% year over year. In Putnam, the median price in May was $599,950, up 9.89% from 2023.

>> Check out lohud.com's Current and Historical Mortgage Rate Database to learn more and see rates from years as far back as 1971.

Should you refinance your mortgage in June 2024?

Due to mortgage rates being as high as they are, Freddie Mac expects refinance activity to be "minimal"

"However, if interest rates drop below 6.5%, refinance activity could see some uptick, as millions of borrowers still have rates above 6.5%," Freddie Mac's report said.

"Nevertheless, given persistent inflation, achieving rates below 6.5% is challenging."

Ashley Fontones is the Emerging Audiences Editor at The Journal News and lohud.com. Got an idea for a poll or a story? Email her at afontones@lohud.com .

This article originally appeared on Rockland/Westchester Journal News: Mortgage rates fall for third straight week in June. Should you refinance?