New Tune for Mortgage Rates
Mortgage rates, which have hovered at record-low numbers for some time, edged up for the second week, indicating some would-be buyers could have missed the bottom.
Freddie Mac attributed the increase to stronger-than-expected employment reports. The economy added 163,000 jobs in July, topping expectations and marking the largest increase since February. Layoffs also plunged 45% in July compared with a year ago. Of course, rates could slip again as the wobbly economy struggles to find firm footing.
The 30-year fixed rate, considered the most popular mortgage product because it offers stable payments for three decades, averaged 3.59% with an average 0.6 point for the week ending Thursday, up from the prior week’s 3.55%. Last year, the 30-year rate averaged 4.32%, according to Freddie.
The 15-year rate, popular because of its quick payoff time, averaged 2.84% with an average 0.6 point, up from last week’s 2.83%. A year ago, the average was 3.50%.
The five-year adjustable-rate, which still has many consumers jittery because of payment spikes that fed the hosing bust, averaged 2.77%, up a hair from last week’s 2.75%. Last year, it averaged 3.13%.
Read More: New Tune for Mortgage Rates