Jobs Report Keeps Lid on Mortgage Rates: 30-Year at 4.4%

Jobs Report Keeps Lid on Mortgage Rates: 30-Year at 4.4%Average fixed mortgage rates changed little this week, thanks to a somewhat disappointing jobs report last week which helped restrain any further rate spikes, according to Freddie Mac’s update.
July’s unemployment report came in below market projections. That kept the 30-year fixed rate average from moving more than one basis point, to 4.4 percent this week.
The 30-year fixed has surged more than a full percentage point since early May following the Federal Reserve’s talk of tapering its stimulus program.
It has seesawed week-to-week, while remaining below its recent high of 4.51 percent in mid-July.
Frank Nothaft, vice president and chief economist, Freddie Mac: “Even though the unemployment rate fell to 7.4 percent in July, which was the lowest since December 2008, the economy added only 161,000 jobs, short of the market consensus forecast.”
Moreover, revisions subtracted 26,000 workers in the prior two months, and hourly wages fell 0.1 percent in July, representing the first decline since October 2012.
Here is Freddie Mac’s overview for the week:
30-year fixed-rate mortgage averaged 4.40 percent, with an average 0.7 point for the week ending August 8, 2013, up from last week when it averaged 4.39 percent. Last year at this time, the 30-year fixed rate averaged 3.59 percent.
15-year fixed rate this week averaged 3.43 percent, with an average 0.7 point, unchanged from last week. A year ago at this time, the 15-year FRM averaged 2.84 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.19 percent this week, with an average 0.5 point, up from last week when it averaged 3.18 percent. A year ago, the 5-year ARM averaged 2.77 percent.
1-year Treasury-indexed ARM averaged 2.62 percent this week with an average 0.3 point, down from last week when it averaged 2.64 percent. At this time last year, the 1-year ARM averaged 2.65 percent.
Jobs Report Keeps Lid on Mortgage Rates: 30-Year at 4.4%

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