Average fixed mortgage rates moved down for the third week in a row as uncertainty about the economy pushed Treasury yields lower earlier in the week, Freddie Mac reported Thursday morning.
The 30-year fixed-rate mortgage averaged 3.91% with an average 0.6 point for the week ending Aug. 6, 2015, down from last week when it averaged 3.98%. A year ago at this time, the 30-year FRM averaged 4.14%.
“All eyes are on the upcoming July employment report, as the Fed has made it clear developments in the labor market will affect the timing of any potential rate hike. But early signals indicate Friday’s employment report will not look so good,” said Sean Becketti, chief economist, Freddie Mac.
“The employment cost index rose 0.2% in the second quarter, the lowest quarterly increase in its 33-year history and ADP’s Private Employment Report missed expectations for private jobs in July. Uncertainty about the economy helped drive down Treasury yields early in the week, and thus mortgage rates fell 7 basis points to 3.91%, the lowest level since June 4th.”
The 15-year FRM this week averaged 3.13% with an average 0.6 point, down from last week when it averaged 3.17%. A year ago at this time, the 15-year FRM averaged 3.27%.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.95% this week with an average 0.4 point, unchanged from last week. A year ago, the 5-year ARM averaged 3.27%.
The 1-year Treasury-indexed ARM averaged 2.54% this week with an average 0.3 point, up from last week when it averaged 2.52%. At this time last year, the 1-year ARM averaged 2.98%.