Fixed Rates Down, ARMs Up
Interest rates on adjustable-rate mortgages inched up during the week as fixed-rates saw mild improvement, mortgage financier Freddie Mac reported today.
“Interest rates for fixed-rate mortgages continue to drift down as reports of economic weakness persist,” said Frank Nothaft, Freddie Mac chief economist. “July’s leading economic indicators fell by more than the market consensus and manufacturing slowed in both the Philadelphia and Richmond regions.”
“ARM rates, on the other hand, rose slightly after the Federal Reserve’s Open Market Committee hinted it might increase the overnight bank lending rate in its Aug. 5 minutes,” he said.
The traditional 30-year fixed-rate mortgage slipped seven basis points to 6.40 percent, while the 15-year fixed fell to 5.93 percent from 6.00 percent a week earlier.
The five-year ARM increased four basis points to 6.03 percent, while the one-year ARM averaged 5.33 percent, up from 5.29 percent last week.
A year ago, the 30-year averaged 6.67 percent, the 15-year averaged 6.12 percent, the five-year 6.35 percent, and the one-year 5.84 percent.
Rates are still historically low, but it doesn’t mean much if you’re underwater on your mortgage or unable to put money down on a new home.
Freddie’s weekly survey utilizes data from conforming mortgages with a loan-to-value of 80 percent.
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