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Freddie Mac: Mortgage rates remain steady

Rates show little movement since mid-May

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Despite fixed mortgage rates moving slightly higher, they remained near their yearly lows over the past month, according to Freddie Mac’s Primary Mortgage Market Survey.  

The 30-year, fixed-rate mortgage averaged 4.14% for the week ended Aug. 7, up from last week’s 4.12%. This is down from 4.40% last year.

Meanwhile, the 15-year, increased from 3.23% to 3.27%, but is down from 3.43% a year prior.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.98% for the week, down from 3.01% a week ago and 3.19% in 2014.

The 1-year Treasury-indexed ARM averaged 2.35% this week compared to last week’s 2.38% and 2.62% a year ago.  

“Mortgage rates were little changed amid a week of light economic reports,” said Frank Nothaft, vice president and chief economist with Freddie Mac. "Of the few releases, ISM non-manufacturing index rose to 58.7 in July from 56.0 a month earlier. Also, factory orders were up 1.1% in June. The two reports signal steady economic growth in the third quarter of the year."

Bankrate posted much of the same, stating that mortgage rates were little changed once again this week, extending the recent trend. 

The 30-yr, FRM hit 4.29%, up from 4.28% last week. The 15-yr, FRM came in at 3.40%, unchanged from last week, while the 5/1 ARM hit 3.34%, down from 3.38% last week.

“Mortgage rates continue to exemplify the 'dog days of summer.' Fixed mortgage rates, and to some extent adjustable mortgage rates, have shown little movement since mid-May," Bankrate said. "Even a bevy of economic releases and a Federal Reserve meeting in the preceding week did little to jolt interest rates to life, with good economic news counteracted by global tensions. As a result, both bond yields and mortgage rates have been held in check."

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