Mortgage Rates Back on the Rise, Hit 4.51 Percent for the Week

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates continuing to trend higher for the week as the 30-year fixed-rate mortgage (FRM) averaged 4.51 percent with an average 0.8 point for the week ending July 11, 2013, up from last week when it averaged 4.29 percent. Last year at this time, the 30-year FRM averaged 3.56 percent. The 15-year FRM averaged 3.53 percent with an average 0.8 point this week, up from last week when it averaged 3.39 percent. A year ago at this time, the 15-year FRM averaged 2.86 percent.   "June's strong employment led to more market speculation that the Federal Reserve will reduce future bond purchases causing bond yields to rise and mortgage rates followed," said Frank Nothaft, vice president and chief economist, Freddie Mac. "The economy gained 195,000 jobs in June, above the market consensus forecast, while revisions to the prior two months added 70,000 on top of that. Moreover, hourly wages rose by 2.2 percent over the last 12 months and represented the largest annual increase in nearly two years. However, the minutes of the June 18th and 19th Federal Reserve's monetary policy committee meeting, released July 10th, stated that many members indicated further improvement in the outlook for the labor market would be required before it would be appropriate to slow the pace of bond purchases." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.26 percent this week with an average 0.7 point, up from last week when it averaged 3.10 percent. A year ago, the five-year ARM averaged 2.74 percent. The one-year Treasury-indexed ARM averaged 2.66 percent this week with an average 0.5 point, unchanged from last week. At this time last year, the one-year ARM averaged 2.69 percent.