Good news on the jobs' front led to an increase in most mortgage rates for the week ended August 13. The 15-year FRM rose 5 basis points to 4.68 percent with fees and points increasing from 0.6 point to 0.7 point.
The latest Freddie Mac’s Primary Mortgage Market Survey released on Thursday reported that the 30-year fixed-rate mortgage (FRM) increased from the prior week’s average of 5.22 percent to 5.29 percent. Fees and points rose from 0.6 point to 0.7 point during the week.
Treasury-indexed hybrid five-year adjustable rate mortgages (ARMs) were up slightly, from 4.73 percent to 4.75 percent with fees and points unchanged at 0.6 point.
One-year Treasury-indexed ARMs were the only mortgages to decline. The average rate last week was 4.72 percent compared to 4.78 percent the week before. Fees and points were also down from 0.5 to 0.4 point.
Frank Nothaft, Freddie Mac vice president and chief economist stated in a press release accompanying the survey results, "Long-term fixed-rate mortgage rates rose slightly over the past week while initial rates on adjustable-rate mortgages (ARMs) were little changed. Last week's release of July's employment report showed a slight improvement in the declining labor market. The unemployment rate ticked down to 9.4% in July, representing the first monthly decline since April 2008. Approximately 247,000 jobs were lost, fewer than the market consensus and the smallest loss since August 2008.
"Median existing home prices rose among 17% of major metropolitan areas in the second quarter from the same period last year, up from 12% showing gains during the first quarter, according the National Association of Realtors," he said. "This represents the greatest number of areas experiencing annual growth since the third quarter of 2008. Moreover, 81% of major cities had house prices rise between the first quarter and second quarter of this year, owing in part to seasonality."
On Monday Fannie Mae reported on its posted yields for the week ended August 7. The 30-year conventional FRM rose from 4.92 percent a week earlier to 5.12 while the 15-year FRM was up from 4.25 percent to 4.42 percent.
Government guaranteed FHA and VA fixed-rate mortgages increased to an average of 5.84 percent from 5.67 percent the previous week.
One-year ARMs were unchanged for the week ended August 1. The average rate both weeks was 3.16 percent.
All Fannie Mae yields are reported on a net basis. Servicing fees are not included.