Freddie Mac: Mortgage rates still pushing buyers to market
Rates still hover at a low point for 2014
Average fixed mortgage rates once again showed very little change while remaining near their 2014 lows prior to a better-than-expected second-quarter gross domestic product reading, helping push more buyers to the market and support homeowner affordability, Freddie Mac reported Thursday morning.
“Mortgage rates were little changed this week with the 30-year fixed-rate mortgage rate at 4.12%, just a basis point lower from the previous week,” Frank Nothaft, vice president and chief economist, Freddie Mac, said. “Meanwhile, on Wednesday afternoon the yield on the 10-year Treasury surged as data showed gross domestic product for the second quarter at a 4.0% annualized rate, above expectations.”
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The 30-year, fixed-rate mortgage averaged 4.12% with an average 0.6 point for the week ending July 31, 2014, down from last week when it averaged 4.13%.
A year ago at this time, the 30-year FRM averaged 4.39%.
The 15-yr, FRM this week averaged 3.23% with an average 0.7 point, down from last week when it averaged 3.26%. A year ago at this time, the 15-year FRM averaged 3.43%.
The 5-yr Treasury-indexed hybrid adjustable-rate mortgage averaged 3.01% this week with an average 0.5 point, up from last week when it averaged 2.99%. A year ago, the 5-year ARM averaged 3.18%.
The 1-yr Treasury-indexed ARM averaged 2.38% this week with an average 0.4 point, down from last week when it averaged 2.39%. At this time last year, the 1-year ARM averaged 2.64%.
Meanwhile, Bankrate recorded that the 30-yr, FRM stayed frozen at 4.28%.
The 15-yr, FRM dipped to 3.40% from 3.41% last, while the 5/1 ARM slightly increased to 3.38%, up from 3.37% a week ago.
"Mortgage rates continue to hover, showing very little movement one way or another. The benchmark 30-year fixed mortgage rates has fluctuated within a very narrow range -- one-tenth of a percentage point – since mid-May as investors come to grips with the idea the Federal Reserve will hold interest rates steady into 2015," Bankrate said.
"But as history has shown, these prolonged periods of stability in bond yields and mortgage rates often end suddenly, with a significant bout of volatility," it added.