Freddie Mac: Fixed Mortgage Rates Inched Down Slightly

Posted by Patrick Barnard on July 23, 2015 No Comments
Categories : Residential Mortgage

After increasing the previous week, fixed mortgage rates reversed course and inched down slightly amid mixed economic and housing data during the week ended July 23, according to Freddie Mac's Primary Mortgage Market Survey.

The average rate for a 30-year fixed-rate mortgage (FRM) was 4.04%, down from 4.09% the previous week. A year ago at this time, the 30-year FRM averaged 4.13%.

The average rate for a 15-year FRM was 3.21%, down from 3.25% the week prior. A year ago at this time, the 15-year FRM averaged 3.26%.

The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 2.97%, up slightly from 2.96%. A year ago, the five-year ARM averaged 2.99%.

The average rate for a one-year Treasury-indexed ARM averaged 2.54%, up from 2.50%. At this time last year, the one-year ARM averaged 2.39%.

‘U.S. Treasury yields dropped following announcements that many blue chip companies' earnings failed to meet expectations,’ explains Sean Becketti, chief economist for Freddie Mac, in a statement. ‘This drove the 30-year fixed-rate mortgage down five basis points to 4.04 percent this week. Housing continues to be the bright spot in the economic recovery. Existing-home sales beat market expectations, coming in at a seasonally adjusted annual rate of 5.49 million homes. This is up 9.6 percent from a year ago and the fastest pace since 2007. Also, housing starts jumped 9.8 percent responding to strong demand in the multifamily market.’

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