Eight weeks ago, it appeared that the days of 30-year fixed rate mortgages at less than 4 percent were a thing of the past. But recent economic uncertainty has sent those rates tumbling, which is good news for those looking to purchase a home or refinance a loan.
According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average hovered below 4 percent for the second week in a row, falling to 3.91 percent with an average 0.6 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.98 percent a week ago and 4.14 percent a year ago.
The 15-year fixed-rate average slipped to 3.13 percent with an average 0.6 point. It was 3.17 percent a week ago and 3.27 percent a year ago.
Hybrid adjustable rate mortgages were mixed. The five-year ARM average held steady at 2.95 percent with an average 0.4 point, same as it was a week ago. It was 3.27 percent a year ago.
The one-year ARM average rose to 2.54 percent with an average 0.3 point. It was 2.52 percent a week ago.
“All eyes are on the upcoming July employment report, as the Fed has made it clear developments in the labor market will affect the timing of any potential rate hike,” Sean Becketti, Freddie Mac chief economist, said in a statement.
“But early signals indicate Friday’s employment report will not look so good. The employment cost index rose 0.2 percent in the second quarter, the lowest quarterly increase in its 33-year history and ADP’s Private Employment Report missed expectations for private jobs in July. Uncertainty about the economy helped drive down Treasury yields early in the week, and thus mortgage rates fell 7 basis points to 3.91 percent, the lowest level since June 4th.”
read more: http://www.washingtonpost.com/blogs/where-we-live/wp/2015/08/06/mortgage-rates-fall-again-amid-economic-uncertainty/
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