Mortgage Rates Recede After Dramatic Jump

By: Tory Barringer, DSNews.com

Following last week’s dramatic spike, mortgage rates reversed course this week, according to surveys from Freddie Mac and Bankrate.com.

Freddie Mac’s Primary Mortgage Market Survey showed the 30-year fixed-rate mortgage (FRM) averaging 4.29 percent (0.7 point) for the week ending July 3, down from last week’s two-year high of 4.46 percent. Last year at this time, the 30-year FRM averaged 3.62 percent.

The 15-year FRM averaged 3.39 percent (0.7 percent), down from 3.50 percent the previous week.

Adjustable rates, meanwhile, stayed more or less on track. The 5-year Treasury-index hybrid adjustable-rate mortgage (ARM) averaged 3.10 percent (0.7 point)—up from 3.08 percent—while the 1-year ARM averaged 2.66 percent (0.4 point), unchanged from the last survey.

“Fixed mortgage rates fell over the holiday week as market concerns over the timing of the Federal Reserve’s pullback in bond purchases eased somewhat,” said Frank Nothaft, VP and chief economist for Freddie Mac. “Rates are still low by historical standards and should continue to aid in housing affordability and the ongoing recovery of the housing market.”

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