The anticipated increase in mortgage interest rates occurred during the week ending August 13. According to the weekly Primary Mortgage Market Survey released by Freddie Mac, fixed mortgage rates ticked up for the first time in four weeks.
Interest rates rise. The average 30-year FRM settled at 3.9% for the week This is up 0.3 percentage points from the previous week. However, it remains below the average seen a year ago at this time.
In addition, 15-year FRMs averaged 3.17% for the week, while last week’s rate was 3.13%. When compared on a year-over-year basis, the current average remains below 3.24%, the rate seen in the previous year.
The average 1-year Treasury-indexed adjustable-rate mortgage settled to 2.62%, which is slightly above last week’s rate of 2.54%. The current rate is also higher when compared to the previous year’s interest rate of 2.36%.
A decrease seen for 5-year Treasury-indexed hybrid ARMs. While many mortgage rates rose, the average 5-year Treasury-indexed hybrid ARM fell to 2.93% from 2.95% last week. In addition, this current average is lower than what was seen at this time a year ago.
Interest rates forecasts remain uncertain. While interest rates remain historically low, experts aren’t sure whether the Fed rate hike will occur in September, as had been anticipated. However, the prospect is still being considered.
“The jobs report for July showed that the economy added 215,000 jobs, in line with expectations,” noted Sean Becketti, Freddie Mac’s chief economist. “Wage growth remains modest at 2.1 percent compared to the same time last year, and another solid if not stellar employment report leaves a potential Fed rate hike on the table for September. However, this year’s theme of overseas economic turbulence continues with the focus shifting east to China. Over the past few days the Chinese Yuan has fallen sharply. In the midst of these mixed data mortgage rates inched up, increasing 3 basis points to 3.94 percent. Headed into the fall, we’ll likely see continued interest rate tension, with dollar appreciation weighing against possible Fed rate hikes leaving the rate outlook clouded.”
The Bureau of Labor Statistics indicated the industries that saw the highest number of newpositions were:
Professional and technical services
In addition, the unemployment rate did not change during July.