Click the graph to enlarge.
Despite all the exciting news the mortgage world has seen recently, rates have only inched up in the slightest of ways. After all the hub-bub from President Obama’s speech on his plans to improve the housing market, rates are still at the incredibly low levels they were last week. Consider this week as your second chance: Rarely do you get a do-over at a deal this good. Don’t believe me? Look at the raw numbers from Freddie Mac.
30-year fixed-rate mortgage (FRM) averaged 4.40% with an average 0.7 point for the week ending August 8, 2013, up from last week when it averaged 4.39%. Last year at this time, the 30-year FRM averaged 3.59%.
15-year FRM this week averaged 3.43% with an average 0.7 point, unchanged from last week. A year ago at this time, the 15-year FRM averaged 2.84%.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.19% this week with an average 0.5 point, up from last week when it averaged 3.18%. A year ago, the 5-year ARM averaged 2.77%.
1-year Treasury-indexed ARM averaged 2.62% this week with an average 0.3 point, down from last week when it averaged 2.64%. At this time last year, the 1-year ARM averaged 2.65%.
It’s as if mortgages stood still in time this past week, or at least moved at a snail’s pace. So whatever motivational phrase you need, just imagine it: seize the day, grab the bull by the horns, no time like the present, make a date with these mortgage rates, etc. Or just stare at a motivational poster until your mouse clicks on a mortgage rates page, whatever works for you.
For a more in-depth look at exactly why the rates changed in the way they did, here’s a quote from Frank Nothaft, vice president and chief economist of Freddie Mac:
“Mortgage rates were relatively unchanged following a mixed employment report for July. Even though the unemployment rate fell to 7.4% in July, which was the lowest since December 2008, the economy added only 161,000 jobs, short of the market consensus forecast. In addition, revisions subtracted 26,000 workers in the prior two months. Finally, hourly wages fell 0.1% in July, representing the first decline since October 2012.”
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