Fixed-Rates Remain Relatively Unchanged for the Week

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates changing little on the heels of the July employment report which came in below the market consensus forecast. This week, the 30-year fixed-rate mortgage (FRM) averaged 4.40 percent with an average 0.7 point for the week ending Aug. 8, 2013, up from last week when it averaged 4.39 percent. Last year at this time, the 30-year FRM averaged 3.59 percent. The 15-year FRM this week averaged 3.43 percent with an average 0.7 point, unchanged from last week. A year ago at this time, the 15-year FRM averaged 2.84 percent. Since spiking more than a full percentage point in early May over taper talk, the average 30-year fixed-rate mortgage has seesawed week-to-week, while remaining below its recent high of 4.51 percent in mid-July.  "Mortgage rates were relatively unchanged following a mixed employment report for July," said Frank Nothaft, vice president and chief economist, Freddie Mac. "Even though the unemployment rate fell to 7.4 percent in July, which was the lowest since December 2008, the economy added only 161,000 jobs, short of the market consensus forecast. In addition, revisions subtracted 26,000 workers in the prior two months. Finally, hourly wages fell 0.1 percent in July, representing the first decline since October 2012." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.19 percent this week with an average 0.5 point, up from last week when it averaged 3.18 percent. A year ago, the five-year ARM averaged 2.77 percent. The one-year Treasury-indexed ARM averaged 2.62 percent this week with an average 0.3 point, down from last week when it averaged 2.64 percent. At this time last year, the one-year ARM averaged 2.65 percent.