In Freddie Mac’s results of its Primary Mortgage Market Survey®, average fixed mortgage rates moved lower from the previous week as the Federal Reserve’s bond purchase program continues to drive market speculation.
- 30-year fixed-rate mortgage (FRM) averaged 4.51 percent with an average 0.7 point for the week ending August 29, 2013, down from last week when it averaged 4.58 percent. A year ago at this time, the 30-year FRM averaged 3.59 percent.
- 15-year FRM this week averaged 3.54 percent with an average 0.7 point, down from last week when it averaged 3.60 percent. A year ago at this time, the 15-year FRM averaged 2.86 percent.
- 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.24 percent this week with an average 0.5 point, up from last week when it averaged 3.21 percent. A year ago, the 5-year ARM averaged 2.78 percent.
- 1-year Treasury-indexed ARM averaged 2.64 percent this week with an average 0.4 point, up from last week when it averaged 2.67 percent. At this time last year, the 1-year ARM averaged 2.63 percent. According to Frank Nothaft, vice president and chief economist, Freddie Mac:
“The Fed is monitoring the housing market closely after the run up in mortgage rates over the past few months. The 13.4 percent 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.”