Mortgage rates ticked up this past week, but remain low enough to keep feeding the tepid economic recovery, Freddie Mac claims.
Rates increased slightly, with the 30-year, fixed-rate mortgage hitting 4.39%, up from 4.31% last week, but down from 3.55% last year, Freddie Mac claims in its Primary Market Survey.
The 15-year, FRM escalated to 3.43%, rising from 3.39% a week ago and 2.83% a year earlier.
Additionally, the 5-year Treasury-index adjustable-rate mortgage averaged 3.18%, barely up from 3.16% last week and a significant jump from 2.75% last year.
Furthermore, the 1-year Treasury-index ARM came in at 2.64%, down from both 2.65% a week earlier and 2.70% a year ago.
"Mortgage rates rose slightly leading up to the Federal Reserve’s monetary policy statement this week. The statement indicated no change in monetary policy. The Fed indicated that the economy expanded at a modest pace, but the unemployment rate remains elevated," said Frank Nothaft, vice president and chief economist for Freddie Mac.
"With mortgage rates still relatively low, the housing recovery continues to support the overall economy. In addition, pending home sales in June hovered near a six-and-a-half year high. This makes it the 11th consecutive quarter housing has made a positive contribution to real GDP growth," Nothaft said.
Bankrate recorded slight movement for the second week in a row.
Bankrate’s 30-year, FRM rose to 4.59% from 4.51% a week earlier.
In addition, the 15-year, FRM increased to 3.65%, up from 3.61%, while the 5/1 ARM elevated to 3.57% from 3.54%.