Bond market reaction to news from the Federal Reserve Board's July meeting brings a decline in mortgage rates for the first time in four weeks, according to Freddie Mac.
The average 30-year fixed-rate mortgage sits at 3.43% for the week ending August 4, a drop from last week's 3.48%. This week last year saw the 30-year fixed-rate mortgage average at 3.91%.
As expected the Federal Reserve did not raise short-term rates in July which played a role in driving up the price on on the 10-year Treasury note.
"Treasury yields fell last week following both the FOMC's meeting and a disappointing advance estimate for second-quarter GDP. Mortgage rates, which had moved up 7 basis
points over the past three weeks, responded by erasing most of those gains," said Sean Becketti, chief economist at Freddie Mac.
Also down is the 15-year fixed-rate mortgage, averaged at 2.74% from last week's averaged 2.78%. At this time in 2015, the 15-year averaged at 3.13%.
"Borrowers are taking advantage of these low rates by refinancing. The latest Weekly Applications Survey results from the MBA show refinance activity up 55% since last year," Becketti added.
For a current rate* based on your loan type needs and personal scenario, contact a Fairway Branch near you to speak with an Arizona Fairway licensed Loan Officer.**
Reporting Sources: Freddie Mac Market Survey and National Mortgage News
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*This article is not a quote for rates and does not serve as a representation of Fairway Independent Mortgage Corp's current rates. Reported rates in this article are based on Freddie Mac's weekly published survey. Rates change daily and vary based on product or customer scenario. For an accurate and locked rate, contact a Fairway Branch near you to speak with an Arizona Fairway licensed Loan Officer HERE
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