Freddie Mac: Fixed Mortgage Rates Fell For Third Week Straight

Posted by Patrick Barnard on August 06, 2015 No Comments
Categories : Residential Mortgage

Fixed mortgage rates edged down for a third week in a row during the week ended Aug. 6, as uncertainty about the economy pushed Treasury yields lower, according to Freddie Mac's Primary Mortgage Market Survey.

The average rate for a 30-year fixed-rate mortgage (FRM) was 3.91%, down from 3.98% the previous week. A year ago at this time, the 30-year FRM averaged 4.14%.

The average rate for a 15-year FRM was 3.13%, down from 3.17%. A year ago at this time, the 15-year FRM averaged 3.27%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.95%, unchanged from the previous week. A year ago, the five-year ARM averaged 3.27%.

The average rate for a one-year Treasury-indexed ARM was 2.54%, up from 2.52% the week prior. At this time last year, the one-year ARM averaged 2.98%.

‘All eyes are on the upcoming July employment report, as the Fed has made it clear developments in the labor market will affect the timing of any potential rate hike,’ explains Sean Becketti, chief economist, Freddie Mac, in a statement. ‘But early signals indicate Friday's employment report will not look so good. The employment cost index rose 0.2 percent in the second quarter, the lowest quarterly increase in its 33-year history and ADP's Private Employment Report missed expectations for private jobs in July. Uncertainty about the economy helped drive down Treasury yields early in the week, and thus mortgage rates fell seven basis points to 3.91 percent, the lowest level since June 4.’

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