According to the newest Freddie Mac Primary Mortgage Market Survey, fixed-rate mortgages edged down after weak jobs report. Today’s release shows that mortgage rates are following long-term bond yields lower, while the unemployment rate increases.
“The economy added 18,000 jobs in June, well below the market consensus forecast, and the unemployment rate rose to 9.2 percent, the highest since December 2010. In addition, employee wages stagnated. These factors may lead to less consumer spending, which in turn, reduces the threat of inflation in the near term.” Freddie Chief Economist Frank Nothaft said.
Although fixed-rate mortgages are at some of the lowest levels this year, many home shoppers still can’t take advantage of these rates because of the tighter lender standards and higher down payment requirements.
The average rate for 30-year fixed-rate mortgages (FRMs) dropped to 4.51 percent from the previous week, when it was 4.60 percent.
This week 15-year fixed rates averaged 3.65 percent, down from last week when it averaged 3.75 percent. A year ago at this time, it averaged 4.06 percent.
Rates on adjustable-rate mortgages also fell this week, but not as much.
The rate for 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 3.29 percent this week, a one percent difference from last week when it averaged 3.30 percent. A year ago, the 5-year ARM averaged 3.85 percent.
Additionally, 1-year Treasury-indexed ARMs averaged 2.95 percent this week, down from last week when it averaged 3.01 percent. At this time last year, the 1-year ARM averaged 3.74 percent.
To obtain the rates, 30-year mortgages required the payment of an average 0.7 points in fees, while 15-year fixed-rate and 5-year ARM required 0.6 points, and 1-year ARMs required 0.5 points.
About Brandon Swanson
Brandon Swanson is the Social Media Moderator for MortgageMatch.com.
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