Rates on a 30-year fixed mortgage dipped below 4 percent this week, according to Freddie Mac’s weekly Primary Mortgage Market Survey, significantly below rates a year ago at this time, the 30-year fixed-rate mortgage averaged 4.12 percent.
Sell-offs of Chinese stock in global markets Monday triggered by an 8 percent decline in the nation’s stock prices helped to drive U.S. Treasury yields down nearly 5 basis points, dropping rates on 30-year fixed mortgage by 6 basis points. Other fixed and adjustable rate mortgages also lost between 0.6 and 0.3 percentage points.
Mortgage rates have vacillated between 3.98 and 4.09 percent since the first full week of June, falling a bit when events overseas take a turn for the worse and rising when the clouds appear ready to part.
“With no clear direction coming from the Fed (on Wednesday), we expect more of the same in coming weeks,” said Freddie Mac’s chief economist, Sean Becketti.
Rates for 30-year fixed-rate mortgages (FRM) averaged 3.98 percent with an average 0.6 point for the week ending July 30, 2015, down from last week when it averaged 4.04 percent.
The 15-year FRM this week averaged 3.17 percent with an average 0.6 point, down from last week when it averaged 3.21 percent. A year ago at this time, the 15-year FRM averaged 3.23 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARM) averaged 2.95 percent this week with an average 0.4 point, down from last week when it averaged 2.97 percent. A year ago, the 5-year ARM averaged 3.01 percent.
One-year Treasury-indexed ARM averaged 2.52 percent this week with an average 0.3 point, down from last week when it averaged 2.54 percent. At this time last year, the 1-year ARM averaged 2.38 percent.
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