Freddie Survey Finds Rates Rise, But Bond Yield Trends Indicate Future Decline

The average 30-year mortgage rate could give up some of the slight week-to-week gain seen in Freddie Mac's most recent survey if the declining trend seen this week in a benchmark bond yield continues. The average 30-year rate according to the Freddie Mac Primary Market Mortgage Survey for the week ended Aug. 13 rose to 5.29% compared to 5.22% the previous week due to a slight improvement in the still-weak labor market. The employment statistics drove the benchmark 10-year bond yield higher to levels near 3.85% on Aug. 7, but since then the yield has generally dropped and as of noon Thursday it was at about 3.66%. The current 30-year rate still remains far below the 6.52% 30-year rate seen a year ago. The average rate for a 15-year fixed-rate mortgage in the most recent week was 4.68%, up from 4.63% the previous week and down from 6.07% the previous year. The average rate for a five-year Treasury-indexed hybrid adjustable-rate mortgage was 4.75%, up from 4.73% the previous week and down from 6.02% a year ago. The average rate for a one-year Treasury ARM was 4.72%, down from 4.78% the previous week and 5.18% a year ago. Average points were 0.7 for 15- and 30-year loans, 0.6 for five-year Treasury hybrids, and 0.4 for one-year Treasury ARMs.