Fixed-Rate Mortgages Level Off for the Week

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed mortgage rates largely unchanged from the previous week as the 30-year fixed-rate mortgage (FRM) averaged 4.40 percent with an average 0.7 point for the week ending Aug. 15, 2013, unchanged from last week. Last year at this time, the 30-year FRM averaged 3.62 percent. Also this week, the 15-year FRM averaged 3.44 percent with an average 0.6 point, up from last week when it averaged 3.43 percent. A year ago at this time, the 15-year FRM averaged 2.88 percent.  "Fixed mortgage rates have been bouncing around over the past few weeks on market speculation that the Fed will taper some of its monetary stimulus," said Frank Nothaft, vice president and chief economist, Freddie Mac. "In fact, 65 percent of economists surveyed by Bloomberg expect the Fed to reduce the amount of bond purchases at its Sept. 17th and 18th monetary policy committee meetings. Currently, mortgage rates on 30-year fixed mortgages are 1.1 percentage points above their all-time low set on Nov. 21, 2012, which translates into $125 more per month in mortgage payments on a $200,000 loan." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.23 percent this week with an average 0.5 point, up from last week when it averaged 3.19 percent. A year ago, the five-year ARM averaged 2.76 percent. The one-year Treasury-indexed ARM averaged 2.67 percent this week with an average 0.4 point, up from last week when it averaged 2.62 percent. At this time last year, the 1-year ARM averaged 2.69 percent.