Rates haven't been this steady since the fall of 2016
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Mortgage rates increased marginally during the week ending August 30, showing a steadiness last seen in the fall of 2016, according to the Primary Mortgage Market Survey released by Freddie Mac.
The average rate for the 30-year fixed-rate mortgage increased to 4.52%, with an average 0.5 point, from the 4.51% average in the previous period. The latest average is an increase from the 3.82% average in the year-ago period.
The 15-year fixed-rate mortgage averaged 3.97%, with an average 0.5 point, down from 3.98%. A year ago at this time, the mortgage averaged 3.12%.
Rates for the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.85%, with an average 0.3 point, up from 3.82%. The 5-year ARM averaged 3.14% in the same week in 2017.
“The 30-year fixed-rate mortgage barely inched up this week, continuing the summer trend of essentially being flat,” Freddie Mac Chief Economist Sam Khater said. “While sales and price growth have softened these last few months, this leveling of rates may be helping more buyers reach the market. Purchase mortgage applications this week were once again modestly above year-ago levels.”
Khater said prospective buyers who found themselves priced out earlier this year should have better prospects heading into the fall given the recent slowdown in price appreciation in several markets.
“Given the strength of the economy, it is possible for home sales to pick up even more before year’s end. The key factor will be if affordably-priced inventory increases enough to continue this recent trend of cooling price appreciation,” he said.
