Fixed Mortgage Rates Rise Again

August 10, 2012 (Shirley Allen)

Mortgage interest rates for fixed loans moved higher again this week, the second consecutive week that fixed rates have increased and only the third time in the last 16 weeks according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending August 9th.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages moved higher this week, with the 30-year fixed rate averaging 3.59 percent with an average of 0.6 points, up from the previous week’s average of 3.55 percent. It was the 20th consecutive week that mortgage rates have been under four percent. A year ago, the 30-year fixed rate mortgage averaged 4.32 percent.

The 15-year fixed rate mortgage averaged 2.84 percent with an average of 0.6 points, up from last week’s average of 2.83 percent. Mortgage rates for the 15-year fixed mortgage have been under three percent for 11 consecutive weeks. At this time last year, the 15-year fixed rate mortgage averaged 3.50 percent.

Adjustable Rate Mortgages:

Interest rates for adjustable-rate mortgages were mixed this week with the 5-year Treasury-indexed hybrid ARM averaging 2.77 percent, with an average of 0.6 points, up from last week’s average of 2.75 percent. The 5-year adjustable rate mortgage averaged 3.13 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage averaged 2.65 percent with an average of 0.4 points, down from last week’s average of 2.70 percent. A year ago, the 1-year adjustable rate mortgage averaged 2.89 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Fixed mortgage rates inched up again this week following stronger-than-expected employment reports. The economy added 163,000 jobs in July, well above the market consensus forecast of 100,000, and the largest increase since February. In addition, the number of announced corporate layoffs fell 45 percent in July compared to last July and was the third time this year that announced layoffs were less than the same month in 2011 according to The Challenger Report. This suggests further net gains in employment are likely in the near future.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.59 3.59 3.63 3.59 3.62 3.55
Fees & Points 0.6 0.6 0.7 0.6 0.6 0.6

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 2.84 2.84 2.89 2.83 2.87 2.82
Fees & Points 0.6 0.6 0.7 0.5 0.6 0.6

5/1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.77 2.79 2.77 2.90 2.70 2.71
Fees & Points 0.6 0.6 0.6 0.4 0.7 0.5
Margin 2.75 2.76 2.75 2.73 2.76 2.74

1-Year Adjustable Rate Mortgages US NE SE NC SW W
Average 2.65 2.68 2.61 2.63 2.70 2.65
Fees & Points 0.4 0.6 0.4 0.3 0.4 0.3
Margin 2.76 2.79 2.75 2.73 2.77 2.75

The National Mortgage Rate Snapshot One Year Ago One Week Ago
  30-YR 15-YR 5/1-YR 1-YR ARM 30-YR 15-YR 5/1-YR 1-YR ARM
Average 4.32   3.50   3.13   2.89   3.55   2.83   2.75   2.70  
Fees & Points 0.7   0.7   0.5   0.5   0.7   0.6   0.6   0.4  
Margin N/A N/A 2.74   2.76   N/A N/A 2.75   2.76  

Tags: 15 year fixed, 30 year fixed, fixed rate mortgage, freddie mac, interest rates, mortgage rates, 5-year hybrid, 1-year treasury

Source:
Freddie Mac