Fixed Mortgage Rates Resume Climb, 30-Year at 4.39%

Fixed Mortgage Rates Resume Climb, 30-Year at 4.39%While they remain relatively low, fixed mortgage rates resumed their upward trend after three consecutive weeks of easing, according to Freddie Mac’s weekly update.
The 30-year fixed rate moved up to 4.39 percent this week, from 4.31 percent last week.
Improving U.S. economic data is raising the prospect that the Federal Reserve will start tapering its massive bond buying sooner than later, a move that indicates a solid recovery and one that will likely roil financial markets.
Economic growth surprisingly rebounded above expectations in the second quarter, though it still remained relatively weak. Corporate earnings are largely stronger. Consumer confidence is making a sustained comeback.
“Mortgage rates rose slightly leading up to the Federal Reserve’s (Fed) monetary policy statement this week,” said Frank Nothaft, vice president and chief economist, Freddie Mac. “The statement indicated no change in monetary policy. The Fed indicated that the economy expanded at a modest pace, but the unemployment rate remains elevated.”
Here is Freddie Mac’s overview for the week:
30-year fixed-rate mortgage averaged 4.39 percent, with an average 0.7 point for the week ending August 1, 2013, up from last week when it averaged 4.31 percent. Last year at this time, the 30-year fixed rate averaged 3.55 percent.
15-year fixed rate averaged 3.43 percent, with an average 0.7 point, up from last week when it averaged 3.39 percent. A year ago at this time, the 15-year fixed rate averaged 2.83 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.18 percent this week, with an average 0.6 point, up from last week when it averaged 3.16 percent. A year ago, the 5-year ARM averaged 2.75 percent.
1-year Treasury-indexed ARM averaged 2.64 percent this week, with an average 0.4 point, down from last week when it averaged 2.65 percent. At this time last year, the 1-year ARM averaged 2.70 percent.
Fixed Mortgage Rates Resume Climb, 30-Year at 4.39%

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