Freddie Mac: Mortgage Rates Reverse Course

After increasing slightly during the previous three weeks, mortgage rates edged back down during the week ended Aug. 4, according to Freddie Mac’s Primary Mortgage Market Survey.

The average rate for a 30-year, fixed-rate mortgage (FRM) was 3.43%, down from 3.48%. A year ago at this time, the 30-year FRM averaged 3.91%.

The average rate for a 15-year FRM was 2.74%, down from 2.78%. A year ago at this time, the 15-year FRM averaged 3.13%.

The average rate for a five-year, Treasury-indexed, hybrid adjustable-rate mortgage (ARM) was 2.73%, down from 2.78%. A year ago, the five-year ARM averaged 2.94%.

“Treasury yields fell last week, following both the FOMC’s meeting and a disappointing advance estimate for second quarter GDP,” says Sean Becketti, chief economist for Freddie Mac, in a release. “Mortgage rates, which had moved up seven basis points over the past three weeks, responded by erasing most of those gains, falling five basis points to 3.43 percent this week for the 30-year, fixed-rate mortgage. Mortgage rates have been below 3.5 percent every week since June 30. Borrowers are taking advantage of these low rates by refinancing. The latest Weekly Applications Survey results from the Mortgage Bankers Association show refinance activity up 55 percent since last year.”

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