Mortgage rates for the 30-year fixed-rate mortgage ticked upward since the previous week—increasing by 0.5 and now at 4.52 percent, on average, according to Freddie Mac’s Primary Mortgage Market Survey® (PMMS®). The average 15-year fixed-rate mortgage, meanwhile, decreased 0.5 points from last week, now at 3.97. And the average five-year, Treasury-indexed hybrid adjustable-rate mortgage (ARM) rose from 3.82 percent to 3.85 percent.
“The 30-year fixed-rate mortgage barely inched up this week, continuing the summer trend of essentially being flat,” said Sam Khater, Freddie Mac’s chief economist, in a statement. “While sales and price growth have softened these last few months, this leveling of rates may be helping more buyers reach the market. Purchase mortgage applications this week were once again modestly above year ago levels.”
Some markets may experience a slowdown in price appreciation going into the fall, Khater said. Freddie Mac expects total home sales in 2018 to increase only 0.2 percent in 2018, up to 6.14 million from last year’s 6.12 million.
“Given the strength of the economy, it is possible for home sales to pick up even more before year’s end. The key factor will be if affordably-priced inventory increases enough to continue this recent trend of cooling price appreciation,” said Khater.
Source: Freddie Mac
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