Mortgage Interest Rate Report - August
Last Updated: 8/11/2014
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Long-term mortgage interest rates made little movement in July, according to mortgage finance company Freddie Mac, with few overly-positive economic reports to push them higher.
Rates dipped lower during the first week of July, with the 30-year fixed rate mortgage (FRM) falling to 4.12 percent, excluding fees, from 4.14 percent in the last week of June. The average on a 15-year FRM was unchanged at 3.22 percent and the one-year adjustable rate mortgage (ARM) carried an average rate of 2.38 percent, down slightly from 2.40 percent the week before.
Long-term rates inched up to their highest point during the second week, with the rate on the 30-year FRM growing to 4.15 percent, the 15-year FRM rising to 3.24 percent and the one-year ARM moving back up to 2.40 percent.
"Mortgage rates increased for the week as the labor market appears to be improving,” commented Freddie Mac vice president and chief economist Frank Nothaft. “Based on the employment report, released last week, the U.S. economy added 288,000 jobs in June, gained 224,000 in May and increased by 304,000 in April. Also, the unemployment rate in June fell to 6.1 percent from 6.3 percent in May."
Rates slipped down again in the third week “amid a week of light economic reports,” according to Nothaft. The average rate on the 30-year FRM dipped to 4.13 percent, the 15-year FRM fell to 3.23 percent and the one-year ARM slid to 2.39 percent.
The 30-year FRM rate was unchanged the following week at 4.13 percent, the 15-year FRM rose to 3.26 percent and the one-year ARM was also unchanged at 2.39 percent.
Rates made the slightest decrease in the last week of July, with the 30-year FRM rate falling to 4.12 percent, the 15-year FRM returning to 3.23 percent and the one-year ARM declining to 2.38 percent.
The unexpected jump in GDP during the second quarter will likely put some upward pressure on mortgage interest rates in the coming weeks, especially if economic reports continue to show increased growth at the present time. Rates are still not likely to move up very quickly though and may look only slightly higher than July's levels.