Freddie Mac: Mortgage rates continue roller coaster, move to new high

Volatility in the bond markets impacts rates

Mortgage rates continued to fluctuate and moved to their highest level this year amid volatility in the bond markets, Freddie Mac’s most recent Primary Mortgage Market Survey said,

The 30-year fixed-rate mortgage averaged 4.09% for the week ending July 16, 2015, up from last week when it averaged 4.04%. A year ago at this time, the 30-year FRM averaged 4.13%. 

The 15-year FRM also increased and grew to 3.25%, up from last week when it averaged 3.20%. In 2014, the 15-year FRM averaged 3.23%. 

In addition, the 5-year Treasury-indexed hybrid adjustable-rate mortgage inched higher to 2.96%, up from last week’s 2.93%. A year ago, the 5-year ARM averaged 2.97%.

The 1-year Treasury-indexed ARM averaged 2.50% this week with, unchanged from last week, but up from 2.39% a year ago.

“The crisis in Greece continues to generate volatility in U.S. Treasury yields. The tentative agreement hammered out last weekend gave investors the confidence to pull back a bit from Treasuries. Rates rose about 16 basis points on the 10-year Treasury from last week. As a result, the average rate on a 30-year fixed-rate mortgage rose 5 basis points this week to 4.09%, the highest level since October of last year,” said Sean Becketti, chief economist with Freddie Mac.

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(Source: Freddie Mac)

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