Mortgage Rates Follow Bond Yields Higher for the Week
August 25, 2011
Mortgage rates moved higher from the previous week's record lows as Treasury bond yields moved higher and other housing data showed improvement.
According to the latest Freddie Mac Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 4.22 percent with an average 0.7 point for the week ending Aug. 25, up from last week when it averaged 4.15 percent. Last year at this time, the 30-year FRM averaged 4.36 percent
Meanwhile, the 15-year FRM averaged 3.44 percent with an average 0.6 point, up from last week when it averaged 3.36 percent. A year ago at this time, the 15-year FRM averaged 3.86 percent.
However, the 5-year ARM declined to 3.07 percent with an average 0.5 point, thereby setting a new all-time record low. It is down from last week when it averaged 3.08 percent. A year ago, the 5-year ARM averaged 3.56 percent.
The 1-year Treasury-indexed ARM averaged 2.93 percent this week with an average 0.5 point, up from last week when it averaged 2.86 percent. At this time last year, the 1-year ARM averaged 3.52 percent.