Mortgage Rates Remain Near Summer Lows

Rates remained close to the summertime lows achieved during the previous week according to information released this morning by Freddie Mac.

The weekly Primary Mortgage Market Survey for the week ended August 27 reported that the 30-year fixed-rate mortgage (FRM) averaged 5.14 percent with 0.7 point.  The previous week the average rate was 5.12 percent with 0.7 point.

The 15-year FRM averaged 4.58 percent compared to 4.56 percent a week earlier.  Fees and points were unchanged at 0.7 point.

Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) made the greatest move, increasing 10 basis points to 4.67 percent.  Fees and points remained at 0.6 point.

 One-year Treasury-indexed ARMs were unchanged, averaging 4.69 percent with 0.6 point. 

Frank Nothaft, Freddie Mae vice president and chief economist said in a press release from Freddie Mac, "Long-term mortgage rates were barely changed this week, remaining historically low, which is helping to sustain a high level of affordability in the home-purchase market.  Low rates contributed to existing home sales rising for the fourth consecutive month to an annual pace of 5.24 million in July, the most since August 2007, according to the National Association of Realtors®.

"Similarly, new home sales rose for the fourth month in a row to 0.4 million, the strongest pace since September 2008, the Commerce Department reported.  The sales gain helped to reduce the number of new unsold houses on the market to the lowest amount since March 1993.  In addition, house prices in June rose nationally for the second consecutive month, according to the Federal Housing Finance Agency's purchase-only house price index."

Earlier Fannie Mae released information on weekly yields for the week ended August 21.

The 30-year conventional FRM was down to an average of 4.83 percent from 4.94 percent a week earlier while the 15 year FRM lost 5 basis points to average 4.20 percent. FHA and VA guaranteed 30-year fixed rate mortgages were also lower, averaging 5.45 percent compared to 5.56 percent the week of August 14.

One-year ARMs were the only product where yields increased during the week. The average was 2.96 compared to 2.93 one week earlier.

All Fannie Mae yields are reported net of servicing fees.