Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS), showing that the 30-year fixed-rate mortgage (FRM) averaged 2.87%.
Mortgage breakdown:
– 30-year fixed-rate mortgage averaged 2.87% with an average 0.7 point for the week ending August 12, 2021, up from last week when it averaged 2.77%. A year ago at this time, the 30-year FRM averaged 2.96%.
– 15-year fixed-rate mortgage averaged 2.15% with an average 0.7 point, up from last week when it averaged 2.10%. A year ago at this time, the 15-year FRM averaged 2.46%.
– 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.44% with an average 0.3 point, up from last week when it averaged 2.40%. A year ago at this time, the 5-year ARM averaged 2.90%.
The takeaway:
“Following last Friday’s strong jobs report, which revealed broad based gains in employment and wage growth, mortgage rates are moving higher,” said Sam Khater, Freddie Mac’s chief economist. “After dropping for six consecutive weeks, the 30-year fixed-rate mortgage increased by ten basis points week over week. Despite the rise, rates remain very low, particularly given that economic growth is strong and will continue into next year.”
“The Freddie Mac fixed rate for a 30-year loan inched up this week. Mortgage rates responded to the rise in the 10-year Treasury, fueled by investors anticipating another rise in consumer prices and a higher rate of inflation,” said George Ratiu, realtor.com®’s senior economist. “Yesterday’s release showed that price growth in July was significant, but not as high as June, especially when considering core inflation. In short, rates are expected to bounce around below the 3% mark until the Fed clarifies a timeline for the expected tapering of monthly mortgage-backed securities purchases.”
