The Truth About Mortgage.com

Mortgage rates displayed very little movement during the week ending August 27, according to mortgage financier Freddie Mac.

With interest rates near record lows, more summer homebuyers took advantage, helping to boost both new and existing home sales.

“Long-term mortgage rates were barely changed this week, remaining historically low, which is helping to sustain a high level of affordability in the home-purchase market,” said Frank Nothaft, Freddie Mac vice president and chief economist,” in a statement.

“Low rates contributed to existing home sales rising for the fourth consecutive month to an annual pace of 5.24 million in July, the most since August 2007, according to the National Association of Realtors®.”

“Similarly, new home sales rose for the fourth month in a row to 0.4 million, the strongest pace since September 2008, the Commerce Department reported.  The sales gain helped to reduce the number of new unsold houses on the market to the lowest amount since March 1993.”

The 30-year fixed averaged 5.14 percent, up from 5.12 percent last week, but below the 6.40 percent seen a year ago.

The 15-year fixed climbed to 4.58 percent from 4.56 percent, and sits firmly below the 5.93 percent seen in August 2008.

The five-year adjustable-rate mortgage was the biggest mover, rising 10 basis points to 4.67 percent, still well below the 6.03 percent average of a year ago.

Finally, the one-year ARM was unchanged at 4.69 percent, and is handily beating the 5.33 percent average from last year.

The rates above are good for conforming loan amounts with a LTV no greater than 80 percent; jumbo loans continue to price a point or so higher.