Freddie Mac reports that the 30-year fixed-rate mortgage (FRM) averaged 5.08 percent this week, down again from the previous week, which was 5.14 percent. Last year at this time, the rate was up to 6.35 percent.
At 4.54 percent, the 15-year FRM was 0.04 points lower than the prior week and 1.36 points below the prior year.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 4.59 percent, down from last week’s 4.67 percent. A year ago, they were 5.97 percent.
One-year Treasury-indexed ARMs averaged 4.62 percent in comparison with 4.69 percent last week and 5.15 percent last year.
Commented Chief Economist Frank Nothaft:
“Bond yields pushed mortgage rates slightly lower this week. Low mortgage rates are helping to keep housing very affordable. Seven of the top eight most affordable months occurred during this year, according to the National Association of Realtors’ (NAR) Housing Affordability Index, which dates back to 1971. As a result, pending sales of existing homes rose for the sixth straight month in July, a trend not seen since the NAR began reporting data in 2001. Moreover, July’s sales were the strongest since June 2007.
“Overall, inflation remains in check while certain sectors of the economy are experiencing some improvement. T he core price index on consumer expenditures, a key indicator tracked by the Federal Reserve, rose 1.4 percent in July from the same time a year earlier and represented the smallest 12-month increase since October 2003. Meanwhile, the manufacturing industry expanded for the first time in 19 months, according to the Institute of Supply Management.”
You’ll find far more market and mortgage information in my forthcoming newsletter next Friday.
Licensed Associate Real Estate Broker
Senior Vice President
Charles Rutenberg Realty
127 E. 56th Street
New York, NY 10022