There’s been a lot of talk lately about when the Federal Reserve will begin raising short-term interest rates. But if you’re in the market for a home, rates right now are still historically low.
This week, Freddie Mac reported that the 30-year fixed-rate mortgage slipped again to reach a new low for the year: 4.10 percent.
A year ago, the 30-year was at 4.58 percent.
The dip was slight from the previous week’s 4.12 percent for the benchmark home loan, but the trend has been downward for months as mixed data regarding the housing market and lower yields on U.S. treasuries have weighed on rates.
However, there was some positive news this week on the overall market, a possible signal that the housing recovery is on firmer footing.
“Mortgage rates were down slightly this week, following the decline in 10-year Treasury yields,” said Frank Nothaft, vice president and chief economist, Freddie Mac. “Meanwhile, housing starts in July jumped 15.7 percent to 1.093 million units after falling 4.0 percent a month earlier. Also, July’s consumer prices [PDF] increased at a 0.1 percent seasonally adjusted pace, the slowest in five months.”
Here’s a rundown of mortgage rates for this week:
30-year fixed-rate mortgage (FRM) averaged 4.10 percent, with an average 0.5 point for the week ending August 21, 2014, down from last week when it averaged 4.12 percent. A year ago at this time, the 30-year FRM averaged 4.58 percent.
15-year FRM this week averaged 3.23 percent, with an average 0.6 point, down from last week when it averaged 3.24 percent. A year ago at this time, the 15-year FRM averaged 3.60 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.95 percent this week, with an average 0.5 point, down from last week when it averaged 2.97 percent. A year ago, the 5-year ARM averaged 3.21 percent.
1-year Treasury-indexed ARM averaged 2.38 percent this week, with an average 0.5 point, up from last week when it averaged 2.36 percent. At this time last year, the 1-year ARM averaged 2.67 percent.