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Fixed Mortgage Rates Inch Upward, Adjustable Rates Edge Down

August 8th, 2014 10:18 AM by Jackie A. Graves, President

Fixed Mortgage Rates Inch Upward, Adjustable Rates Edge Down photo

After weeks of holding steady, mortgage rates for most U.S. home loans edged up this week but still remained near their year’s lows.

The average for a 30-year fixed-rate mortgage rose to 4.14%, up from 4.12% last week, according to the latest survey from mortgage buyer Freddie Mac. A year ago at this time, the 30-year average was 4.40%.

“Mortgage rates were little changed amid a week of light economic reports,” Frank E. Nothaft, Freddie Mac vice president and chief economist, said in a statement. “Of the few releases, ISM non-manufacturing index rose to 58.7 in July from 56.0 a month earlier. Also,factory orders were up 1.1% in June. The two reports signal steady economic growth in the third quarter of the year.”

The average rate on a 15-year fixed loan also rose this week, inching up to 3.27% from 3.23% last week. It averaged 3.43% at this time a year ago.

In contrast, averages for the two most popular hybrid adjustable-rate mortgages dipped slightly. The five-year ARM remained fell from 3.01% last week to 2.98% this week. A year ago, it averaged 3.19%.

The one-year ARM average also edged down to 2.35% this week, from 2.38% last week. It was at 2.62% at this time last year.

Rates have fallen recently after rising at the end of 2013, when the Federal Reserve announced it would begin to curb its bond-buying stimulus program. The program has helped offset dramatic gains in real estate prices and kept affordability elevated while the market has stabilized.

In the latest Mortgage Rate Trend Index by Bankrate.com, 67% of the loan analysts polled believe rates will continue to hover around their current levels, while another 25% of analysts predict rates will drop.

“The employment report information from last week played in the favor of mortgage rates,” said Shaun Guerrero, salses manager at Fairway Independent Mortgage in Silverdale, WA. “Rates seem to have settled into a comfort zone for the time being.”

“When it comes to mortgage rates, I use the airline analogy: ‘It’s better to be on the ground wishing you were in the air than in the air wishing you were on the ground.’ In other words, with the highly-publicized issues happening overseas, the market could take a turn for the better or the worse. If you have a rate that fits you, secure it. Don’t leave your finances up in the air.”

By: Rachel Stults | To view the original article click here

Posted in:General
Posted by Jackie A. Graves, President on August 8th, 2014 10:18 AM

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