Mortgage Rates Eased This Week
Mortgage rates saw some improvement this week as inflationary concerns eased, according to the latest weekly survey from mortgage financier Freddie Mac.
“Mortgage rates fell this week amid market speculation that the Federal Reserve (Fed) may not raise the overnight bank-lending rate this year after all,” said Frank Nothaft, Freddie Mac vice president and chief economist.
“Some of the factors motivating the change in market perceptions this week included retail sales for June rising at the slowest pace since February and consumer sentiment in July holding at low levels not seen since 1980.
“In addition, in his July 15th semi-annual testimony before Congress, Fed chairman Bernanke indicated that the FOMC participants had considerable uncertainty surrounding their outlook for economic growth.”
The benchmark 30-year fixed-rate mortgage averaged 6.26 percent, down from 6.37 percent, while the 15-year fell to 5.78 percent from 5.91 percent.
Adjustable-rate mortgages also improved, but less so, with the average five-year ARM clocking in at 5.80 percent, down from 5.82 percent last week.
The one-year ARM averaged 5.10 percent for the week ending July 17, down from 5.17 percent a week earlier.
A year ago, the 30-year averaged 6.73 percent, the 15-year 6.38 percent, the five-year 6.35 percent, and the one-year 5.72 percent.
Rates continue to be historically low, but because mortgage lenders and banks aren’t willing to offer high loan-to-values or programs for borrowers with lower credit scores, many may still find themselves shut out of the market.
Freddie Mac has conducted its weekly survey since the 1970s, with data based on conforming mortgages with a loan-to-value of 80 percent.
(photo: sporkist)
Related Topics:
