The Freddie Mac Primary Mortgage Market Survey finds the average rate for the 30-year fixed rate loan to have declined seven basis points from the previous week, but this is still 92 bps higher than it was for the same week last year.
Chief economist Frank Nothaft commented "The Fed is monitoring the housing market closely after the run up in mortgage rates over the past few months. The 13.4% drop in new home sales in July led financial markets to speculate whether the Fed might delay reducing its bond purchases and allowed long-term bond yields and fixed mortgage rates to decline over the week."
The rising rates over the past few months have had its effect on overall
For the week ended today, the average for the 30-year FRM is at 4.51%, down from 4.58% one week prior, while the 15-year FRM average is at 3.54%, down from 3.60%.
As for adjustable rate mortgage, the five-year Treasury-indexed hybrid actually had a three bps increase in its average rate to 3.24%. The one-year Treasury-indexed ARM is at 2.64%, down three basis points.
