Rates remaining mostly flat has been the theme since late spring
Mortgage rates took a step back during the week ending August 16, decreasing slightly for the second consecutive week, according to the Primary Mortgage Market Survey released by Freddie Mac.
The average rate for the 30-year fixed-rate mortgage declined to 4.53%, with an average 0.5 point, from 4.59% in the previous period. The latest average marked an increase from the 3.89% average in the same period in 2017.
The 15-year fixed-rate mortgage averaged 4.01%, with an average 0.5 point, down from the previous average of 4.05%. A year ago at this time, the 15-year fixed-rate mortgage averaged 3.16%.
Rates for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.87%, with an average 0.4 point, slipping from the previous average of 3.9%. During the same week last year, the mortgage averaged 3.16%.
Freddie Mac Chief Economist Sam Khater said that mortgage rates staying mostly unchanged week over week has been the dominant theme since late spring. Khater noted that rates have been stable despite turbulent currency markets and the highest core inflation rates since 2008. However, the stability has not resulted in higher home sales.
“Purchase mortgage applications trailed year-ago levels again last week, and it’s clear that in some markets the combination of ascending home prices, limited affordable inventory, and this year’s higher rates are curtailing homebuyer demand,” Khater said.
Related stories:
Are prices, rates turning off millennial homebuyers?
Mortgage rates retreat slightly
