GSEs Say Mortgage Rates Rose Last Week
Mortgages rates rose again during the most recent week according to data released by both Fannie Mae and Freddie Mac.
The results of Freddie Mac's Primary Mortgage Market Survey for the week ended July 30 was released this morning. All four mortgage products followed by the survey had higher average rates than the previous week.
The 30-year fixed-rate mortgage (FRM) averaged 5.25 percent with 0.7 point, up from the week before when the average was 5.20 percent with 0.7 point.
The 15-year FRM inched up one basis point to 4.69 percent. Fees and points were unchanged at 0.7 point.
Five-year Treasury-indexed adjustable-rate mortgages (ARMs) also eked out a small increase, going from 4.74 percent to 4.75. Fees and points declined from 0.7 point to 0.6 point.
One-year Treasury-indexed ARMs averaged 4.80 percent for the week, up from 4.77 percent. Fees and points declined from 0.6 to 0.5 point.
Frank Nothaft, Freddie Mac vice president and chief economist said in a statement released with the survey results, “Bond yields rose slightly higher this week on market optimism that the economy may be stabilizing somewhat, and mortgage rates followed those yields. For instance, the Federal Reserve reported in its July 29th regional review that residential real estate markets in most of its districts remained weak, but many reported signs of improvement. In addition, it noted that entry-level homes continued to perform relatively well in part due to the first-time homebuyer tax credit.
“Other economic reports confirm that the housing market may indeed be bottoming out,” Nothaft said. “New home sales rose for the third consecutive month in June to an annual pace of 384,000 homes, the most since November 2008 and the number of new houses on the market fell to the lowest amount since February 1999, according to the Department of Commerce. Sales of existing homes also showed a three-month gain to 4.89 million, the most since October 2008, and the share of distressed homes fell to 31 percent compared to almost half at the beginning of the year, the National Association of Realtors® (NAR) reported.”
Fannie Mae's report of weekly yields for the week ended July 24 showed similar increases.
The 30-year conventional FRM rose from 4.31 percent to 4.35 percent for the week while the 15-year FRM was up four basis points to 5.02 percent.
Government guaranteed FHA and VA 30-year FRMs increased from 5.67 to 5.75 while the one-year ARM had the most significant increase, rising from 3.05 percent to 3.25 percent.
All Fannie Mae yields are reported on a net basis and do not include servicing fees.
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