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Fixed Rates Rise for Fourth Consecutive Week and Hit 3.66 Percent
Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing fixed mortgage rates following long-term Treasury yields higher amid continued positive data on the housing market. The 30-year fixed-rate mortgage (FRM) averaged 3.66 percent with an average 0.7 point for the week ending Aug. 23, 2012, up from last week when it averaged 3.62 percent. Last year at this time, the 30-year FRM averaged 4.22 percent. The 15-year FRM averaged 2.89 percent for the week with an average 0.7 point, up from last week when it averaged 2.88 percent. A year ago at this time, the 15-year FRM averaged 3.44 percent.
"Fixed mortgage rates inched upward this week along with other long-term yields," said Frank Nothaft, vice president and chief economist for Freddie Mac. "The Census Bureau reported that residential building permits were up in July, although builders slowed the pace of construction starts on one-family homes in July to the least since March while apartment and condominium building picked up to the most since April."
The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.80 percent for the week with an average 0.6 point, up from last week when it averaged 2.76 percent. A year ago, the five-year ARM averaged 3.07 percent. The one-year Treasury-indexed ARM averaged 2.66 percent this week with an average 0.4 point, down from last week when it averaged 2.69 percent. At this time last year, the one-year ARM averaged 2.93 percent.
"Existing home sales rose in July from June's eight-month low and the median sales price jumped 9.4 percent from a year earlier, representing the largest 12-month gain since January 2006," said Nothaft. "The price gain was broad-based, with annual increases registered in all four regions of the U.S. and led by a 24.5 percent increase in the West."
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