Freddie Mac: Mortgage Rates Dipped Slightly This Week

Posted by Patrick Barnard on August 29, 2013 No Comments
Categories : Residential Mortgage

Mortgage rates dropped for the first time in five weeks this week, according to Freddie Mac's Primary Mortgage Market Survey.

For the week ending Aug. 29, the average rate for a 30-year fixed-rate mortgage was 4.51%, a dip of about 0.7 percentage points, compared to the previous week, when it averaged 4.58%. A year ago at this time, the average rate for a 30-year fixed-rate mortgage was about 3.59%.

The average rate for a 15-year fixed-rate mortgage was 3.54%, down about 0.7 percentage points, compared to the week prior, when it averaged 3.6%. A year ago at this time, the 15-year fixed-rate mortgage averaged 2.86%.

The average rate for a 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.24%, an increase of 0.5 percentage points, up from last week's 3.21%. A year ago, the 5-year ARM averaged 2.78%.

The average rate for a 1-year Treasury-indexed ARM averaged 2.64%, an increase of 0.4 percentage points, up from last week's 2.67%. At this time last year, the 1-year ARM averaged 2.63%.

The average rate for a 15-year fixed home loan is currently 3.34%, while the average rate for a 5-1 adjustable-rate mortgage is 3.12%.

The report's findings are in line with another report released earlier this week from Zillow, showing that the average rate on a 30-year fixed mortgage fell to 4.37%, a drop of 15 basis points from the week prior, when the average was 4.52%.

Mortgage interest rates began to rise in late June, after the Federal Reserve announced that it would likely begin tapering its $85 billion-a-month bond-buying program in the fourth quarter. In July, however, Federal Reserve Chairman Ben Bernanke issued more conservative statements, saying the Fed would base its decision on a range of economic data, including unemployment.

‘The Fed is monitoring the housing market closely after the run-up in mortgage rates over the past few months,’ says Frank Nothaft, vice president and chief economist of Freddie Mac, in a statement. ‘The 13.4 percent drop in new home sales in July led financial markets to speculate whether the Fed might delay reducing its bond purchases and allowed long-term bond yields and fixed mortgage rates to decline over the week.’

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