Rates Hold Steady

The average 30-year fixed mortgage rate crept up to 6.97% for the week ending July 31 from 6.96% the week before, according to Freddie Mac's Primary Mortgage Market Survey.The average 15-year fixed mortgage rate inched up to 6.63% from 6.62% the previous week, and the average rate for one-year Treasury-indexed adjustable-rate mortgages dipped to 5.62% from 5.65%. Fees and points averaged 1.1 for fixed-rate mortgages and 1.2 for ARMs. "Mortgage interest rates continue to hold steady and affordable," said Robert Van Order, Freddie Mac's chief economist. "This is surely a major factor in figures released [Thursday] by the Commerce Department showing a rise in the sales of new homes in June. Combined with no sign of rising inflation rates on the horizon and little chance the Fed will raise rates any time soon, all signs point to a continuing healthy housing market." A year ago, the average 30-year and 15-year fixed rates were 7.36% and 6.90%, respectively, and the average one-year ARM rate was 5.49%. Freddie Mac's website address is http://www.freddiemac.com.