Long-term mortgage rates increased this week, Freddie Mac reported today in its weekly survey.
The 30-year fixed-rate mortgage rose to an average 6.62 percent from last week’s 6.59 percent, and the 15-year fixed-rate mortgage gained to 6.3 percent from 6.25 percent. Points, which are fees lenders charge for loan processing expressed as a percent of the loan, averaged 0.4 on the 30-year loans and 0.5 on the 15-year loans.
Costs on adjustable-rate mortgages (ARMs) also ticked higher, with the five-year Treasury-indexed hybrid ARM up to 6.35 percent from 6.33 percent and the one-year Treasury-indexed ARM growing to 5.67 percent from 5.65 percent. Points on these loans averaged 0.5 and 0.6, respectively.
“Interest rates on prime conforming fixed-rate mortgages ticked up a little in the past week, in line with 10-year Treasury rates movements and retracing part of last week’s decline,” Frank Nothaft, Freddie Mac vice president and chief economist, said in a statement. “Problems in the nonprime mortgage market where funds are expensive and hard to get have not affected the prime conforming market.”
Nothaft added that this week’s data had factored in both the Producer Price Index and the Consumer Price Index for July.
“Core inflation at the wholesale level increased 0.1 percent in July, or 2.3 percent year-over-year, below market expectations,” Nothaft said, “while core inflation at the retail level grew by 0.2 percent, or 2.2 percent year-over-year, in line with what had been expected.”
The following is a sampling of Bankrate.com’s average 30-year-mortgage interest rates this week in some U.S. metropolitan areas:
New York – 6.69 percent with 0.06 point
Los Angeles – 6.73 percent with 0.41 point
Chicago – 6.72 percent with 0.04 point
San Francisco – 6.63 percent with 0.48 point
Philadelphia – 6.71 percent with 0.09 point
Detroit – 6.76 percent with no points
Boston – 6.7 percent with 0.05 point
Houston – 6.62 percent with 0.48 point
Dallas – 6.64 percent with 0.37 point
Washington, D.C. – 6.6 percent with 0.44 point