Freddie Mac: Mortgage rates down after slight increase

Mortgage rates were down during the week ending July 14.According to Freddie Mac's most recent Primary Mortgage Market Survey, interest rates recorded for the week ending July 14 declined after experiencing a slight increase the previous week.The rate for 30-year fixed-rate mortgages declined to 4.51 percent after it had rose to 4.6 percent the previous week. Compared to last year's same week, the rate was also lower than the 4.57 percent average. The rate for 15-year FRMs also recorded declines, falling to 3.65 percent from 3.75 percent last year and 4.06 percent last year.”Long-term bond yields and mortgage rates fell this week following a weak employment report,” said Frank Nothaft, Freddie Mac's vice president and chief economist. “The economy added 18,000 jobs in June, well below the market consensus forecast, and the unemployment rate rose to 9.2 percent, the highest since December 2010. In addition, employee wages stagnated. These factors may lead to less consumer spending, which in turn, reduces the threat of inflation in the near term.”Interest rates for adjustable-rate mortgages were also down, with five-year ARMs settling at a rate of 3.29 percent and one-year ARMs at 2.95 percent. The averages are down from 3.3 percent and 3.01 percent last week, respectively.The lower rates could spur more real estate transactions, especially in regions with healthy job sectors. Thus, the Houston real estate market could record higher sales shortly.Courtesy of 2M Realty News

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