According to Freddie Mac's latest Primary Mortgage Market Survey, U.S. mortgage rates slightly moved up over the past week.
Sam Khater, Freddie Mac's chief economist, says mortgage rates were mostly unchanged, but did tick up for the first time since early June. "The 10-year Treasury yield continues to hover along the same narrow range, as increased global trade tensions are causing investors to take a cautious approach," he said. "This in turn has kept borrowing costs at bay, which is certainly welcoming news for those looking to buy a home before the summer ends."
Khater added, "A record number of people quit their job last month, most likely for a new opportunity with higher wages and better benefits. This positive trend, along with these lower mortgage rates, should increasingly give some previously priced-out prospective homebuyers the financial wherewithal to resume their home search."
Freddie Mac News Facts
30-year fixed-rate mortgage (FRM) averaged 4.53 percent with an average 0.4 point for the week ending July 12, 2018, up from last week when it averaged 4.52 percent. A year ago at this time, the 30-year FRM averaged 4.03 percent.
15-year FRM this week averaged 4.02 percent with an average 0.4 point, up from last week when it averaged 3.99 percent. A year ago at this time, the 15-year FRM averaged 3.29 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.86 percent this week with an average 0.3 point, up from last week when it averaged 3.74 percent. A year ago at this time, the 5-year ARM averaged 3.28 percent.
U.S. mortgage applications increased 2.5 percent from one week earlier. This week's results included an adjustment for the 2018 Fourth of July holiday. The Market Composite Index increased 2.5 percent.
According to a new report from the Mortgage Bankers Association, U.S. mortgage credit availability increased in June 2018. A decline in the MCAI indicates that lending standards are tightening, while increases in the index are indicative of loosening credit.
According to the National Association of Realtors, U.S. pending home sales decreased modestly in May 2018, and have now fallen on an annualized basis for the fifth straight month. A larger decline in contract activity in the South offset gains in the Northeast, Midwest and West.
According to Freddie Mac's latest Primary Mortgage Market Survey, after declining for two straight weeks, U.S. mortgage rates reversed direction this week and rose to their second highest level this year.