Mortgage Giant, Freddie Mac released this weeks Prime Mortgage Market Survey (PMMS) showing the average mortgage rates on a fixed rate mortgage jumping over the short holiday week.
The surveys reveals the following:
30-year fixed-rate mortgage (FRM) averaged 3.96 percent with an average 0.6 point for the week ending July 6, 2017 showing a sharp jump from last week when it averaged 3.88 percent.
15-year FRM this week averaged 3.22 percent with an average 0.5 point, showing a decline from last week when it averaged 3.17 percent.
5/1-year ARM averaged 3.21 percent this week with an average 0.5 point, remaining the same as it did last week. A year ago at this time the rates averaged 2.82 percent.
The 10-year Treasury bond is linked closely to the mortgage rates and serve as an indicator of where the mortgage rates are going. When the yields rise you can bet money that the mortage loan rates will also rise. Over the last 10 days, the yield on the Treasury bond has risen a whopping 21 basis points!
According to Brett Sinnott, vice president of capital markets at CMG Financial, Fortunately for the housing market, political stories continue to dominate the news, which has allowed rates to remain fairly stable to start the summer, Sinnott said. It is still expected that the Fed will increase rates at least once more this year. So far, the moves have had little effect on mortgages.
To calculate average mortgage rates, Freddie Mac surveys lenders across the country at the beginning of each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.