Mortgage Rates Didn’t Budge Much This Week

Posted by Patrick Barnard on September 11, 2014 No Comments
Categories : Residential Mortgage

Following an increase in bond yields, average fixed mortgage rates moved upward only slightly this week, according to the results of Freddie Mac's Primary Mortgage Market Survey.

The 30-year fixed-rate mortgage (FRM) averaged 4.12% with an average 0.5 point for the week ending Sept. 11. This is up from last week when it averaged 4.10% but down from a year ago, when it averaged 4.57%.

The 15-year FRM this week averaged 3.26% with an average 0.5 point – up from last week, when it averaged 3.24%. A year ago at this time, the 15-year FRM averaged 3.59%.

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.99% this week with an average 0.5 point – up from last week when it averaged 2.97%. Comparatively, the five-year ARM averaged 3.22% at this time last year.

The one-year Treasury-indexed ARM averaged 2.45% this week with an average 0.4 point – up from last week's 2.40%. At this time last year, the one-year ARM averaged 2.67%.

However, according to the Mortgage Bankers Association, mortgage application volume recently took a steep dive – mainly due to the Labor Day holiday.

‘Mortgage rates were up slightly this week, following the increase in 10-year Treasury yields, despite last week's disappointing employment report,’ comments Frank Nothaft, vice president and chief economist of Freddie Mac.

‘The U.S. economy added only 142,000 jobs in August, after a 212,000 gain in July and a 267,000 increase in June. The unemployment rate fell to 6.1 percent in August from 6.2 percent the previous month,’ he adds.

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