Mixed Housing Data Causes Slight Rise in Rates

Freddie Mac has released the results of its Primary Mortgage Market Survey (PMMS), showing average fixed-rate mortgages (FRMs) easing slightly from the previous week amid mixed housing data. The 30-year FRM averaged 4.20 percent, with an average 0.5 point for the week ending Sept. 25, 2014, down from last week when it averaged 4.23 percent. A year ago at this time, the 30-year FRM averaged 4.32 percent. The 15-year FRM also averaged 3.36 percent with an average 0.5 point, down from last week when it averaged 3.37 percent. A year ago at this time, the 15-year FRM averaged 3.37 percent. "Mortgage rates were slightly changed with the rate on the 30-year fixed mortgage down three basis points,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “Meanwhile, existing home sales dropped 1.8 percent in August to a seasonally-adjusted annual rate of 5.05 million. Sales of new single-family homes surged 18 percent in August to an annual pace of 504,000 units. Also, the Federal Housing Finance Agency reported house prices rose just 0.1 percent on a seasonally-adjusted basis in July, and were up 4.4 percent over the past year." The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.08 percent this week with an average 0.4 point, up from last week when it averaged 3.06 percent. A year ago, the five-year ARM averaged 3.07 percent. Also last week, the one-year Treasury-indexed ARM averaged 2.43 percent this week with an average 0.4 point, unchanged from last week. At this time last year, the one-year ARM averaged 2.63 percent.