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Mortgage Rates Unchanged This Week
Thursday, August 14, 2008
Today Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.52 percent with an average 0.7 point for the week ending August 14, 2008, unchanged from last week when it averaged 6.52 percent. Last year at this time, the 30-year FRM averaged 6.62 percent.
The 15-year FRM this week averaged 6.07 percent with an average 0.7 point, down from last week when it averaged 6.10 percent. A year ago at this time, the 15-year FRM averaged 6.30 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.02 percent this week, with an average 0.6 point, down from last week when it averaged 6.05 percent. A year ago, the 5-year ARM averaged 6.35 percent.
One-year Treasury-indexed ARMs averaged 5.18 percent this week with an average 0.5 point, down from last week when it averaged 5.22 percent. At this time last year, the 1-year ARM averaged 5.67 percent.
(Average commitment rates should be reported along with average fees and points to reflect the total cost of obtaining the mortgage.)
"Mortgage rates held relatively steady for the second week in a row amid offsetting economic data releases," said Frank Nothaft, Freddie Mac vice president and chief economist. "For instance, consumer credit grew by $14 billion in June, more than twice the market consensus, but retail sales were weaker in July.
"News was mixed for the housing market as well. Pending existing home sales unexpectedly rose in June, signaling a possible increase in home sales in July and August, according to the National Association of Realtors. Offsetting that information was the news that commercial banks tightened lending standards even more for prime, nontraditional and subprime mortgages in July according to the Federal Reserve, an action that may dampen further home sales activity going forward."