Mortgage rates increased slightly for a second week in a row during the week ended July 28, with the average rate for a 30-year, fixed-rate mortgage (FRM) at about 3.48%, up from 3.45%, according to Freddie Mac’s Primary Mortgage Market Survey.
Still, rates are at historic lows – a year ago at this time, the 30-year FRM averaged 3.98% – and with the Federal Reserve’s announcement that it is not planning to raise short-term rates any time soon, it is likely that rates will remain low for quite some time to come.
The average rate for a 15-year FRM this past week was 2.78%, up from 2.75%. A year ago at this time, the 15-year FRM averaged 3.17%.
The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 2.78%, unchanged from the previous week. A year ago, the five-year ARM averaged 2.95%.
“The 10-year Treasury yield remained flat this week in anticipation of the Fed’s July policy meeting,” says Sean Becketti, chief economist for Freddie Mac, in a release. “Mortgage rates, on the other hand, rose another three basis points to 3.48 percent. Nonetheless, home sales continue to benefit from the persistently low mortgage rates, with June’s new home sales coming in at an annualized rate of 592,000 homes – its fastest pace since 2008.”