Focus now on labor market for rate-hike timeline
MCLEAN, VA–(Marketwired – Aug 10, 2015) – Freddie Mac (OTCQB: FMCC) has released the results of its Primary Mortgage Market Survey® (PMMS®), showing average fixed mortgage rates moving down for the third week in a row as uncertainty about the economy pushed Treasury yields lower earlier in the week.
• 30-year fixed-rate mortgage (FRM) averaged 3.91 percent with an average 0.6 point for the week ending August 6, 2015, down from last week when it averaged 3.98 percent. A year ago at this time, the 30-year FRM averaged 4.14 percent.
• 15-year FRM this week averaged 3.13 percent with an average 0.6 point, down from last week when it averaged 3.17 percent. A year ago at this time, the 15-year FRM averaged 3.27 percent.
• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.95 percent this week with an average 0.4 point, unchanged from last week. A year ago, the 5-year ARM averaged 3.27 percent.
• 1-year Treasury-indexed ARM averaged 2.54 percent this week with an average 0.3 point, up from last week when it averaged 2.52 percent. At this time last year, the 1-year ARM averaged 2.98 percent.
Average commitment rates should be reported along with average fees and points to reflect the total upfront cost of obtaining the mortgage. Visit the following links for the Regional and National Mortgage Rate Details and Definitions. Borrowers may still pay closing costs which are not included in the survey.
Quote Attributed to Sean Becketti, chief economist, Freddie Mac
"All eyes are on the upcoming July employment report, as the Fed has made it clear developments in the labor market will affect the timing of any potential rate hike. But early signals indicate Friday's employment report will not look so good. The employment cost index rose 0.2 percent in the second quarter, the lowest quarterly increase in its 33-year history and ADP's Private Employment Report missed expectations for private jobs in July. Uncertainty about the economy helped drive down Treasury yields early in the week, and thus mortgage rates fell 7 basis points to 3.91 percent, the lowest level since June 4th."