30-Year Fixed Holds at 4.4%, 1.1 Points Above Record Low

30-Year Fixed Holds at 4.4%, 1.1 Points Above Record LowThe good news is that fixed mortgage rates didn’t climb this week, with the 30-fixed holding at 4.4 percent.
But that’s 1.1 percentage points above the record low set on Nov. 21, 2012, Freddie Mac said.
And with all indications pointing to a pullback by the Federal Reserve on its bond purchases, the long-term rate on home loans likely won’t fade below 4 percent in the foreseeable future.
That difference of 1.1 percentage points above the all-time low on the 30-year “translates into $125 more per month in mortgage payments on a $200,000 loan,” said Frank Nothaft, vice president and chief economist, Freddie Mac.
Sixty-five percent of economists surveyed by Bloomberg expect the Fed to reduce the amount of bond purchases at its September 17th and 18th monetary-policy committee meetings.
Here is Freddie Mac’s rundown on rates for this week:
30-year fixed rate mortgage averaged 4.40 percent, with an average 0.7 point for the week ending August 15, 2013, unchanged from last week. Last year at this time, the 30-year fixed rate averaged 3.62 percent.
15-year fixed rate this week averaged 3.44 percent, with an average 0.6 point, up from last week when it averaged 3.43 percent. A year ago at this time, the 15-year fixed rate averaged 2.88 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.23 percent this week, with an average 0.5 point, up from last week when it averaged 3.19 percent. A year ago, the 5-year ARM averaged 2.76 percent.
1-year Treasury-indexed ARM averaged 2.67 percent this week, with an average 0.4 point, up from last week when it averaged 2.62 percent. At this time last year, the 1-year ARM averaged 2.69 percent.
30-Year Fixed Holds at 4.4%, 1.1 Points Above Record Low

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