Mortgage Rates Slightly Lower Amid Little Movement in Financial Markets

Mortgage big says the typical price on a 30-year fixed-rate mortgage ticked down to three.

“Mortgage rates fell last week to their lowest levels since May after China’s yuan devaluation, but strong U.S. data helped rates quickly recover most of the drop”, said Erin Lantz, vice president of mortgages at Zillow. A year ago at this time, the 30-year FRM averaged 4.10 percent.

QuoteAttributed to Sean Becketti, chief economist, Freddie Mac. The 15-year mortgage was at an average of 3.15 percent with an average 0.6 point, down from last week when it averaged 3.17 percent. The same term priced at 3.23% a year ago.

Current rates at Bank of America for the 30 year fixed mortgage are unchanged at 4.00%, and their 15 year is unchanged as well at 2.875%.

“Overall inflation grew an underwhelming 0.2 percent year-over-year in July, but core inflation remains steady at 1.8 percent keeping chances alive for a potential rate hike in September”.

Additionally, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.94 percent this week with an average 0.5 point, up from last week when it averaged 2.93 percent. It averaged 2.93% last week and 2.95% a year earlier. The 7 year ARM interest rates can be had for 3.125% with an April of 3.265%. “Overall housing markets remain on track for the best year since 2007”. New construction is gaining momentum, as single-family housing starts rose 12.8% in July, according to the National Association of Home Builders.

Investors and financial experts are watching for an anticipated interest-rate increase by the Federal Reserve next month, which could bring higher rates for home loans.

Refinancing accounted for 45% of Wells Fargo’s applications in the second quarter, down from 61% in the previous quarter, according to the bank’s earnings statement.

Zillow predicts tomorrow’s seasonally adjusted Mortgage Bankers Association Weekly Application Index will show purchase loan activity did not change from the week prior.