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Mortgage Rates Head Back Up After Four Weeks of Lows

rates-riseFixed mortgage rates stopped their downward fall and headed back up for the first time in four weeks.

According to Freddie Mac's Primary Mortgage Market Survey (PMMS) released Thursday, the 30-year fixed-rate mortgage (FRM) averaged 3.94 percent with an average 0.6 point for the week ending August 13, 2015.

This is an increase from last week's rate of 3.91 percent, but lower than a year ago at this time when the 30-year FRM averaged 4.12 percent.

Freddie Mac also reported that the 15-year FRM this week averaged 3.17 percent with an average 0.6 point, up from last week when it averaged 3.13 percent. A year ago at this time, the 15-year FRM averaged 3.24 percent.

"The jobs report for July showed that the economy added 215,000 jobs, in line with expectations," said Sean Becketti, chief economist at Freddie Mac. "Wage growth remains modest at 2.1 percent compared to the same time last year, and another solid if not stellar employment report leaves a potential Fed rate hike on the table for September. However, this year's theme of overseas economic turbulence continues with the focus shifting east to China. Over the past few days the Chinese Yuan has fallen sharply. In the midst of these mixed data mortgage rates inched up, increasing 3 basis points to 3.94 percent."

In addition, the 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.93 percent this week with an average 0.5 point, down from last week when it averaged 2.95 percent. A year ago, the 5-year ARM averaged 2.97 percent.

The 1-year Treasury-indexed ARM averaged 2.62 percent this week with an average 0.3 point, up from last week when it averaged 2.54 percent. At this time last year, the 1-year ARM averaged 2.36 percent, Freddie Mac reported.

"Headed into the fall, we'll likely see continued interest rate tension, with dollar appreciation weighing against possible Fed rate hikes leaving the rate outlook clouded," Becketti said.

Primary Mortgage Market Survey

About Author: Xhevrije West

Xhevrije West is a writer and editor based in Dallas, Texas. She has worked for a number of publications including The Syracuse New Times, Dallas Flow Magazine, and Bellwethr Magazine. She completed her Bachelors at Alcorn State University and went on to complete her Masters at Syracuse University.
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