Four weeks later, news hasn’t changed. It’s officially been one month. That’s right, according to the weekly Primary Mortgage Market Survey from Freddie Mac, mortgage rates inched upward for the fourth consecutive week.
The month-long upward trend is the longest of its kind this year. You didn’t actually think rates were going to fall forever, did you? For those of you who were hoping they would, don’t fret. Current rates are still way lower than what they were at this point last year.
Here are this week’s numbers.
30-year fixed-rate mortgages jumped from last week’s 3.62 percent to 3.66 percent with an average 0.7 points. Last year at this time, the 30-year FRM averaged 4.22 percent.
15-year fixed-rate mortgages jumped slightly from the 2.88 percent it averaged a week ago to 2.89 percent with 0.7 points. A year ago, a 15-year FRM averaged 3.44 percent.
5/1-year ARMs jumped from 2.76 percent last week to 2.80 percent with an average of 0.6 points, while 1-year ARMs averaged 2.66 percent with an average of 0.4 points. Last week, 1-year ARMs averaged 2.69 percent.
Last year, a 5/1-year ARM averaged 2.93 percent, while a 1-year ARM averaged 2.93 percent.
As always, Frank Nothaft, vice president and chief economist from Freddie Mac, presented us with some useful information.
He explained, “Fixed mortgage rates inched upward this week along with other long-term yields. The Census Bureau reported that residential building permits were up in July, although builders slowed the pace of construction starts on one-family homes in July to the least since March while apartment and condominium building picked up to the most since April. Existing home sales rose in July from June’s eight-month low and the median sales price jumped 9.4 percent from a year earlier, representing the largest 12-month gain since January 2006. The price gain was broad-based, with annual increases registered in all four regions of the U.S. and led by a 24.5 percent increase in the West.”
Almost word for word the way I would have explained it.
What have we learned today? One, Frank Nothaft and I are pretty comparable when it comes to explaining mortgage rates. Two, if you’re looking to refinance or get a new mortgage, the time is now. Remember, even though rates have jumped slightly the last four weeks, they are still lower than last year’s. Call us today!