The 30-year fixed-rate mortgage (FRM) was 4.39 percent, with an average 0.7 point, the week ending Aug 1, according to Freddie Mac’s weekly Primary Mortgage Market Survey.
Last week, the 30-year FRM averaged 4.31 percent. It was 3.55 percent a year ago.
Meanwhile, the average interest rate on the 15-year FRM was 3.43 percent with an average 0.7 point, up from 3.39 percent last week. A year ago, the 15-year FRM averaged 2.83 percent.
“Mortgage rates rose slightly leading up to the Federal Reserve’s (Fed) monetary policy statement this week. The statement indicated no change in monetary policy. The Fed indicated that the economy expanded at a modest pace, but the unemployment rate remains elevated,” says Frank Nothaft, vice president and chief economist of Freddie Mac.
For the 5-year Treasury-indexed hybrid adjustable rate mortgage (ARM), the average interest rate was 3.18 percent, with an average 0.6 point, up from last week’s 3.16 percent. A year ago, the 5-year ARM was 2.75 percent.
1-year ARM rates down
Finally, for the week ending Aug 1, Freddie Mac reported the 1-year Treasury-indexed ARM averaged 2.64 percent, with an average 0.4 point, down from 2.65 percent last week, and down from 2.70 percent a year ago.
“With mortgage rates still relatively low, the housing recovery continues to support the overall economy. May’s S&P/Case Shiller 20-city composite index was up 12.2 percent from last May and represented the largest annual increase since March 2006. Second-quarter GDP growth came in at 1.7 percent with residential fixed investments contributing 0.4 percent. This makes it the 11th consecutive quarter housing has made a positive contribution to real GDP growth,” Nothaft said.