Mortgage Rates Remain Under 4 Percent Threshold

Fixed mortgage rates remained under the 4 percent threshold, moving down for the third week in a row.

Freddie Mac recently released the results of its Primary Mortgage Market Survey (PMMS), finding that average fixed mortgage rates continue to drop as economic uncertainty pushed Treasury yields lower.

"All eyes are on the upcoming July employment report, as the Fed has made it clear developments in the labor market will affect the timing of any potential rate hike," said Sean Becketti, chief economist, Freddie Mac. "But early signals indicate Friday's employment report will not look so good.

According to Freddie Mac, the 30-year fixed-rate mortgage (FRM) averaged 3.91 percent with an average 0.6 point for the week ending August 6, 2015, a decrease from last week the rate averaged 3.98 percent. The 30-year FRM averaged 4.14 percent a year ago at this time.

The 15-year FRM this week averaged 3.13 percent with an average 0.6 point, down from last week when it averaged 3.17 percent, according to Freddie Mac. A year ago at this time, the 15-year FRM averaged 3.27 percent.

Freddie Mac also found that the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.95 percent this week with an average 0.4 point, unchanged from last week. A year ago, the 5-year ARM averaged 3.27 percent. In addition, the 1-year Treasury-indexed ARM averaged 2.54 percent this week with an average 0.3 point, up from last week when it averaged 2.52 percent. At this time last year, the 1-year ARM averaged 2.98 percent.

"The employment cost index  rose 0.2 percent in the second quarter, the lowest quarterly increase in its 33-year history and ADP's Private Employment Report missed expectations for private jobs in July," Becketti said. "Uncertainty about the economy helped drive down Treasury yields early in the week, and thus mortgage rates fell 7 basis points to 3.91 percent, the lowest level since June 4th."