Mortgage rates eased this week thanks to what mortgage financier Freddie Mac called more positive economic news.
“Better-than-expected economic reports helped to keep mortgage rates low this week,” said Frank Nothaft, Freddie Mac vice chief economist, in a statement.
“The economy slowed by an annual rate of 1 percent in the second quarter, which was more positive than market forecasts.”
Typically, good economic news pushes mortgage rates up, but it’s not an exact science, and rates didn’t really improve all that much (how mortgage rates are determined).
The benchmark 30-year fixed dipped to 5.22 percent from 5.25 percent for the week ending August 6, and was well below its year-ago average of 6.52 percent.
The 15-year fixed slipped six basis points to 4.63 percent, and sits firmly below the 6.10 percent seen this time last year.
The five-year ARM averaged 4.73 percent this week, down from 4.75 percent last week and 6.05 percent a year ago.
Finally, the one-year ARM averaged 4.78 percent, down two basis points from last week and more than a point from the 6.05 percent seen a year ago.
These rates are good for conforming mortgages with an 80 percent loan-to-value, or 20 percent down; jumbo loans continue to price about a point higher.
Rates have been historically excellent, but are they low enough for prospective home buyers to bite?
“The first half of this year contained the top six months with the most affordable housing conditions since the National Association of Realtors® (NAR) began calculating its Housing Affordability Index in January 1971,” Nothaft said.
But it’s not that home prices are necessarily cheap, it’s that the government is intervening desperately.
Related Topics:
