Fixed Mortgage Rates Rise From Their Record Lows

August 3, 2012 (Shirley Allen)

Mortgage interest rates for fixed loans increased this week with the 30-year fixed rate mortgage increasing for only the second time in the last 15 weeks according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS) for the week ending August 2nd.

Fixed Rate Mortgages:

Interest rates on fixed rate mortgages rose from their record lows last week, with the 30-year fixed rate averaging 3.55 percent with an average of 0.7 points, up from the previous week’s record low average of 3.49 percent. It was the 19th consecutive week that mortgage rates have been under four percent. A year ago, the 30-year fixed rate mortgage averaged 4.39 percent.

The 15-year fixed rate mortgage averaged 2.83 percent with an average of 0.6 points, up from last week’s record low average of 2.80 percent. Mortgage rates for the 15-year fixed mortgage have been under three percent for ten consecutive weeks. At this time last year, the 15-year fixed rate mortgage averaged 3.66 percent.

Adjustable Rate Mortgages:

Interest rates for adjustable-rate mortgages were mixed this week with the 5-year Treasury-indexed hybrid ARM averaging 2.75 percent, with an average of 0.6 points, up from last average of 2.74 percent. The 5-year adjustable rate mortgage averaged 3.18 percent a year earlier.

The 1-year Treasury-indexed adjustable rate mortgage averaged 2.70 percent with an average of 0.4 points, down from last week’s average of 2.71 percent. A year ago, the 1-year adjustable rate mortgage averaged 3.02 percent.

Frank Nothaft, vice president and chief economist of Freddie Mac, stated, “Recent announcements of additional debt relief for the Eurozone and mixed domestic economic indicators added upward pressure on Treasury yields as well as mortgage rates this week. The U.S. economy grew at a 1.5 percent annualized rate in the second quarter, slower than the 2.0 percent growth in the first quarter with consumer spending in June unchanged from May. However, consumer confidence rose in July for the first time in five months according to The Conference Board. Housing data were also assorted. The S&P-500 Case Shiller® 20-City Composite Index rose for the fourth consecutive month in May with 18 of the cities experiencing positive growth. Nonetheless, pending home sales fell 1.4 percent in June, below the market consensus forecast of a 0.3 percent increase, and May’s figure had a downward revision.”

30-Year Fixed Rate Mortgages US NE SE NC SW W
Average 3.55 3.57 3.58 3.56 3.59 3.50
Fees & Points 0.7 0.6 0.7 0.7 0.7 0.7

15-Year Fixed Rate Mortgages US NE SE NC SW W
Average 2.83 2.84 2.84 2.85 2.89 2.78
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 2.75 2.77 2.76 2.86 2.68 2.69
Fees & Points 0.6 0.6 0.6 0.5 0.7 0.6
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 2.70 2.81 2.67 2.65 2.70 2.65
Fees & Points 0.4 0.5 0.5 0.3 0.4 0.3
Margin 2.76 2.79 2.78 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 4.39   3.54   3.18   3.02   3.49   2.80   2.74   2.71  
Fees & Points 0.8   0.7   0.6   0.5   0.7   0.7   0.6   0.5  
Margin N/A N/A 2.70   2.76   N/A N/A 2.74   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