Mortgage rates held the line this week, remaining at three-month
lows, with the average rate on 30-year, fixed-rate mortgages
remaining just above 5%, according to Freddie Mac's (FRE) weekly
survey of mortgage rates.
After yields on Treasurys rebounded from the multi-decade lows
they hit earlier this year, they have since retraced a bit - taking
mortgage rates along with them.
Freddie chief economist Frank Nothaft noted Thursday that the
results, which ended three straight weeks of declines in fixed
mortgage rates, come on the heels of the Mortgage Bankers'
Association reporting a 13% jump in mortgage applications last
week. The results, boosted by refinancings, were the strongest
since May.
Earlier Thursday, however, National Association of Realtors data
showed that existing-home sales in the U.S. unexpectedly fell in
August after a string of increases that took them to a two-year
high. The Federal Reserve, in a move aimed at keeping interest
rates low for home buyers through early next year, decided to
extend and gradually phase out its purchase of mortgage-backed
securities.
Freddie said the 30-year fixed-rate mortgage averaged 5.04% for
the week ended Thursday, unchanged from last week's average and
down from the year earlier's 6.09%. Rates on 15-year fixed-rate
mortgages were 4.46%, compared with 4.47% and 5.77%,
respectively.
Five-year Treasury-indexed hybrid adjustable-rate mortgages
averaged 4.51%, flat with last week but down from 6.02% a year
earlier. One-year Treasury-indexed ARMs were 4.52%, dropping from
4.58% and 5.03%, respectively.
To obtain the rates, all but the 5-year adjustable required
payment of an average 0.6 point. A point is 1% of the mortgage
amount, charged as prepaid interest. The 5-year adjustable needed
0.5 point.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com;