We are seeing mortgage interest rates move up and down as if on a slow moving see saw. After the previous week’s three-year low, the 30-year fixed-rate mortgage average (FRM) has inched up to 3.75% for the week ending July 3.
According to Freddie Mac’s Primary Mortgage Market Survey, the latest 30-year fixed-rate FRM average is only slightly higher than the 3.73% it averaged in the week ending June 26 – but still significantly lower than the same time a year ago, when the 30-year FRM averaged 4.52%.
Meanwhile, the 15-year FRM averaged 3.18%, up from the previous week when it averaged 3.16%. Lastly, the five-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.45%, rising from the previous week’s rate of 3.39%.
“We’re seeing a tug of war happen as the fixed income market flashes warning signs while the equities market continues to march higher with optimism,” said Sam Khater, chief economist at Freddie Mac. “The data suggests the economy is weakening but is still on very solid ground with high consumer confidence and a strong labor market. Closer to home, the housing market continues to slowly improve and gain momentum as we head into the second half of the year, which is good news and should keep the economy growing.”
So still we wait to see the strength of the consumer confidence working alongside a growing economy for now which is good for the US. Until such time when it can no longer sustain such growth and it begins to falter and reverse itself. When there is bad news for the economy, there is typically good news for mortgage rates. Keep your eyes open and be ready to call ABBA First to refinance your 4%+ interest rate down!