Fixed Mortgage Rates Move Higher For Third Consecutive Week
- 30-Year Fixed Rate Mortgage-The 30-year FRM averaged 3.62 percent with an average 0.6 point for the week ending August 16, 2012, up from last week when it averaged 3.59 percent. Last year at this time, the 30-year FRM averaged 4.15 percent.
- 15-Year Fixed Rate Mortgage-The 15-year FRMthis week averaged 2.88 percent with an average 0.6 point, up from last week when it averaged 2.84 percent.A year ago at this time, the 15-year FRM averaged 3.36 percent.
- 5-Year Adjustable Rate Mortgage-Averaged 2.76 percent this week with an average 0.6 point, down from last week when it averaged 2.77 percent. A year ago, the 5-year ARM averaged 3.08 percent.
- 1-Year Adjustable Rate Mortgage-1-year Treasury-indexed ARMaveraged 2.69 percent this week with an average 0.4 point, up from last week when it averaged 2.65 percent. At this time last year, the 1-year ARM averaged 2.86 percent.
When those types of numbers come out, the stock market seems to do well and that’s not good for rates. That’s because when investors become more confident about the economy, there’s less demand for safe investments such as U.S. Treasury and mortgage bonds. The trend normally results in higher bond yields, which translates into higher mortgage rates.