Freddie Mac: Mortgage rates stay low heading into holiday
Rates barely move amid mixed housing news
Mortgage rates barely moved due to mixed news on the housing market heading into the holiday weekend, according to Freddie Mac’s Primary Mortgage Market Survey.
The 30-year, fixed-rate mortgage averaged 4.10% for the week ended Aug. 28, unchanged from a week ago, but down from 4.51% last year.
The 15-year, FRM slightly increased to 3.25% from 3.23% a week prior. In 2013, the 15-year, FRM averaged 3.54%.
Meanwhile, the 5-year Treasury-indexed hybrid adjustable-rate mortgage came in at 2.97%, marginally up from 2.95% a week ago and 3.24% in 2013.
The 1-year Treasury-indexed ARM edged up to 2.39%, compared to 2.38% a week ago. Last year this time, the 1-year ARM came in at 2.64%.
“Mortgage rates were little changed following mixed housing news. Existing home sales rose for the fourth consecutive month to an annualized pace of 5.15 million, the highest of the year. On the other hand, new home sales fell for the third consecutive month to an annualized rate of 412,000 units,” said Frank Nothaft, vice president and chief economist with Freddie Mac.
“Also, the S&P/Case-Shiller national home price index confirmed the slowing in national house-price appreciation that has occurred in other metrics, with the seasonally-adjusted national index down 0.1% in June but on a year-over-year basis up a solid 6.2 percent,” he added.
Bankrate’s results were not much different, posting the 30-year, FRM falling to 4.23% from 4.24% a week ago.
The 15-year, FRM increased to 3.38%, up from 3.27% a week prior, while the 5/1 ARM inched up to 3.32%, compared to 3.28% last week.
“The big event of the past week as far as interest rates are concerned was a widely anticipated speech from Fed Chairwoman Janet Yellen. With Yellen not making any unexpected pronouncements, financial markets carried on as usual with the stock market going on to set new record highs and the bond market motoring along,” Bankrate said.