Fixed Rates Rise for Second Consecutive Week, Nearing the 3.60 Percent Mark

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing fixed mortgage rates moving higher following stronger-than-expected employment reports. The 30-year fixed-rate mortgage (FRM) averaged 3.59 percent with an average 0.6 point for the week ending Aug. 9, 2012, up from last week when it averaged 3.55 percent. Last year at this time, the 30-year FRM averaged 4.32 percent.  Also this week, the 15-year FRM averaged 2.84 percent with an average 0.6 point, up from last week when it averaged 2.83 percent. A year ago at this time, the 15-year FRM averaged 3.50 percent. "Fixed mortgage rates inched up again this week following stronger-than-expected employment reports," said Frank Nothaft, vice president and chief economist of Freddie Mac. "The economy added 163,000 jobs in July, well above the market consensus forecast of 100,000, and the largest increase since February. In addition, the number of announced corporate layoffs fell 45 percent in July compared to last July and was the third time this year that announced layoffs were less than the same month in 2011 according to The Challenger Report. This suggests further net gains in employment are likely in the near future." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.77 percent this week with an average 0.6 point, up from last week when it averaged 2.75 percent. A year ago, the five-year ARM averaged 3.13 percent. The one-year Treasury-indexed ARM averaged 2.65 percent this week with an average 0.4 point, down from last week when it averaged 2.70 percent. At this time last year, the one-year ARM averaged 2.89 percent.