Freddie Mac: Interest rates increase, following bond yields

Mortgage rates increased slightly during the previous week.According to Freddie Mac's Primary Mortgage Market Survey, interest rates for the nation's mortgages increased during the week ending August 25, after dipping to record lows the previous week.The average interest rate for 30-year fixed-rate mortgages during the week was 4.22 percent, which is up from 4.15 percent the previous week, but down from 4.36 percent during the same week the previous year. The rate for 15-year FRMs averaged 3.44 percent, which was up from 3.36 percent during the week prior, but below the average of 3.86 percent recorded in the previous year.”Fixed mortgage rates followed Treasury bond yields higher this week while data reports suggest an improvement in the housing market,” said Freddie Mac vice president and chief economist Frank Nothaft. “The Federal Housing Finance Agency national House Price Index rose for the third straight month in June bolstered by a 3.3 percent gain in the East North Central Census Division.”The average rates for adjustable-rate mortgages went in different directions, according to the report. The rate for five-year ARMs settled at 3.07 percent, which is down from 3.08 percent the week prior and 3.56 percent from the previous year. However, the interest rate for one-year ARMs averaged 2.93 percent, an increase from the 2.86-percent average recorded the week before the recent period, but down from 3.52 percent the previous year.With rates still affordable and the local job sector improving, the Houston real estate market may continue to record more sales throughout August and into the winter season.Courtesy of 2M Realty News

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