Mortgage rates inched up yet again, but not enough to discourage borrowers from purchasing a home as home sales continue to increase at rates not seen since 2008.
“Home sales continue to benefit from the persistently low mortgage rates with June’s new home sales coming in at an annualized rate of 592,000 homes, its fastest pace since 2008,” Freddie Mac Chief Economist Sean Becketti said.
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(Source: Freddie Mac)
The 30-year fixed-rate mortgage increased to 3.48% for the week ending in July 28. 2016. This is up from last week’s 3.45% but down from last year’s 3.98%.
The 15-year FRM also increased to 2.78%, up from last week’s 2.75%, but a decrease from last year’s 3.17%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage remained unchanged from last week at 2.78%. It remains down from last year’s 2.95%.
“The 10-year Treasury yield remained flat this week in anticipation of the Fed’s July policy meeting,” Becketti said. “Mortgage rates, on the other hand, rose another 3 basis points to 3.48%.”
The Federal Open Market Committee chose to forgo raising the federal funds rate in its latest July meeting as the market starts to recover from the initial impact of the U.K. choosing to leave the European Union.