After falling for five of the previous six weeks, mortgage rates inched back up again during the week ended July 12, with the average rate for a 30-year fixed-rate mortgage (FRM) rising to 4.53%, up from slightly 4.52% the previous week, according to Freddie Mac’s Primary Mortgage Market Survey.
A year ago at this time, the 30-year FRM averaged 4.03%.
“The 10-year Treasury yield continues to hover along the same narrow range, as increased global trade tensions are causing investors to take a cautious approach,” says Sam Khater, chief economist for Freddie Mac, in a statement. “This in turn has kept borrowing costs at bay, which is certainly welcoming news for those looking to buy a home before the summer ends.”
Khater points out that the recent increase in the quits rate – as shown in the most recent jobs report – is a sign that the job market is improving and that wage growth will likely follow, which bodes well for the housing market.
“A record number of people quit their job last month, most likely for a new opportunity with higher wages and better benefits,” he says. “This positive trend, along with these lower mortgage rates, should increasingly give some previously priced-out prospective homebuyers the financial wherewithal to resume their home search.”
The average rate for a 15-year FRM was 4.02%, up from 3.99% the previous week. A year ago at this time, the 15-year FRM averaged 3.29%.
The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) was 3.86%, up from 3.74%. A year ago at this time, the five-year ARM averaged 3.28%.