Mortgage rates are little changed as markets remain cautious
Mortgage rates were little changed this week after declining the previous two weeks, according to Freddie Mac.
The 30-year fixed-rate mortgage averaged 3.93% for the week ending Aug. 3, up from last week when it averaged 3.92%. A year ago at this time, the 30-year fixed-rate mortgage averaged 3.43%.
"The 10-year Treasury yield was relatively flat this week, as was the 30-year mortgage rate which rose 1 basis point. Despite a strong advance estimate for second-quarter GDP, markets are erring on the side of caution," said Sean Becketti, chief economist at Freddie Mac, in a press release.
The 15-year fixed-rate mortgage this week averaged 3.18%, down from last week when it averaged 3.2%. A year ago at this time, the 15-year fixed-rate mortgage averaged 2.74%.
The five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.15%, down from last week when it averaged 3.18%. A year ago at this time, it averaged 2.73%.
"Mortgage rates rose early last week after the Federal Open Markets Committee meeting statement all but confirmed that the Fed will end the remnants of its recession-era bond buying program in September,” said Erin Lantz, Zillow's vice president of mortgages, when that company released its own rate tracker on Tuesday.
"However, they fell back early this week as global uncertainty builds and markets become sensitive to low late-summer trading volumes. Markets will watch…Friday's jobs report for signs of a strengthening American economy."