Fixed mortgage rates reversed course and inched higher for the first time in four weeks during the week ended Aug. 13, according to Freddie Mac's Primary Mortgage Market Survey.
The average rate for a 30-year fixed-rate mortgage (FRM) was 3.94%, up from 3.91% the previous week. During the same week one year earlier, the 30-year FRM averaged 4.12%.
The average rate for a 15-year FRM was 3.17%, up from 3.13% the previous week. A year earlier, the 15-year FRM averaged 3.24%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.93%, down from 2.95%. A year ago, the five-year ARM averaged 2.97%.
The average rate for a one-year Treasury-indexed ARM was 2.62%, up from 2.54% the week prior. At this time last year, the one-year ARM averaged 2.36%.
‘The jobs report for July showed that the economy added 215,000 jobs, in line with expectations,’ says Sean Becketti, chief economist for Freddie Mac, in a release. ‘Wage growth remains modest at 2.1 percent compared to the same time last year, and another solid if not stellar employment report leaves a potential Fed rate hike on the table for September.
‘However, this year's theme of overseas economic turbulence continues with the focus shifting east to China,’ he adds. ‘Over the past few days, the Chinese Yuan has fallen sharply. In the midst of these mixed data, mortgage rates inched up, increasing three basis points to 3.94 percent. Headed into the fall, we'll likely see continued interest rate tension, with dollar appreciation weighing against possible Fed rate hikes leaving the rate outlook clouded.’