Recent announcements of additional debt relief for the eurozone and mixed domestic economic indicators caused mortgage rates to break their streak of record-breaking lows.
The Freddie Mac survey showed the 30-year, fixed-rate mortgage averaged 3.55% for the week ending Thursday, up from last week’s record low of 3.49%. Last year at this time, the 30-year FRM averaged 4.39%.
Prior to this week, the average rate on the 30-year FRM fell to or matched record-low levels in 13 of the past 14 weeks.
The 15-year FRM, a popular refinancing choice, averaged 2.83%, also rising from last week‘s record low of 2.8%. A year ago, the average rate for a 15-year FRM was 3.54%.
Five-year, Treasury-indexed, hybrid adjustable-rate mortgages averaged 2.75%, up from 2.74% last week and falling from 3.18% a year earlier.
And one-year, Treasury-indexed ARMs averaged 2.7%, down from last week’s 2.71% and down from 3.02% last year.
The U.S. economy grew at a 1.5% annualized rate in the second quarter, slower than the 2% growth the previous quarter with consumer spending in June unchanged from May. However, consumer confidence rose in July for the first time in five months according to The Conference Board, Freddie Mac Chief Economist Frank Nothaft noted.
An assortment of housing data also contributed to the reversed movement of mortgage rates.
The S&P/Case-Shiller 20-city composite index rose for the fourth consecutive month in May with 18 of the cities experiencing positive growth. Nonetheless, pending home sales fell 1.4% in June, below the market consensus forecast of a 0.3% increase, and May’s figure had a downward revision.
Home loan analytics firm Bankrate, which surveys large banks, reported the 30-year FRM rose to 3.77% from 3.75%, while the 15-year FRM ticked down to 2.99% from 3%. The 5/1 ARM increased to 2.91% from 2.89%.
jhilley@housingwire.com
