Following an increase in bond yields, average fixed mortgage rates moved upward only slightly this week, according to the results of Freddie Mac's Primary Mortgage Market Survey.
The 30-year fixed-rate mortgage (FRM) averaged 4.12% with an average 0.5 point for the week ending Sept. 11. This is up from last week when it averaged 4.10% but down from a year ago, when it averaged 4.57%.
The 15-year FRM this week averaged 3.26% with an average 0.5 point – up from last week, when it averaged 3.24%. A year ago at this time, the 15-year FRM averaged 3.59%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.99% this week with an average 0.5 point – up from last week when it averaged 2.97%. Comparatively, the five-year ARM averaged 3.22% at this time last year.
The one-year Treasury-indexed ARM averaged 2.45% this week with an average 0.4 point – up from last week's 2.40%. At this time last year, the one-year ARM averaged 2.67%.
However, according to the Mortgage Bankers Association, mortgage application volume recently took a steep dive – mainly due to the Labor Day holiday.
‘Mortgage rates were up slightly this week, following the increase in 10-year Treasury yields, despite last week's disappointing employment report,’ comments Frank Nothaft, vice president and chief economist of Freddie Mac.
‘The U.S. economy added only 142,000 jobs in August, after a 212,000 gain in July and a 267,000 increase in June. The unemployment rate fell to 6.1 percent in August from 6.2 percent the previous month,’ he adds.