According to Freddie Mac's Primary Mortgage Market Survey for the week ending July 10, there was little change in either short or long term mortgage rates.
The 30-year fixed-rate mortgage (FRM) increased from 6.35 percent with 0.6 point during the week ended July 3 to 6.37 percent also with 0.6 point last week. One year ago this week the 30-year FRM averaged 6.73 percent.
15-year FRMs had an average contract interest rate of 5.91 percent, one basis point lower than the previous week. Fees and points were unchanged at 0.6. During the same week in 2007 the 15-year FRM averaged 6.39 percent.
There was also little change in short term rates. The five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 5.82 percent this week with an average 0.6 point. A week earlier it averaged 5.78 percent with 0.7 point and one year ago the 5-year ARM averaged 6.38 percent.
One-year Treasury-indexed ARMS averaged 5.17 percent with 0.5 point. The rate was unchanged from one week earlier although points did decline from 0.6 point. One year ago the 1-year ARM averaged 5.71 percent.
"In the housing sector, economic reports were mixed this week," said Frank Nothaft, Freddie Mac vice president and chief economist. "Pending sales for existing homes fell more than expected in May but April's increase was revised even higher, according to the National Association of Realtors. Offsetting this decline, the number of mortgage applications for home purchases over the week ending July 4th was nearly 10 percent above the over five-year low set just two weeks prior, despite the holiday break, according to the Mortgage Bankers Association."
The Mortgage Bankers Association released this week's figures Wednesday morning. MBA's Weekly Mortgage Applications Survey for the week ended July 11 reported that the average contract interest rate for 30-year FRMs decreased from 6.43 percent to 6.22 percent with points, including the origination fee, increasing to 1.21 from 1.06.
The rate on 15-year FRMs decreased 20 basis points to 5.74 percent with points increasing from 1.10 to 1.13.
The average contract interest rate for one-year ARMS decreased to 7.16 percent from 7.24 percent with points increasing to 0.36 from 0.26.
Loan activity as measured by mortgage loan application volume was up 1.7 percent on a seasonally adjusted basis. On an unadjusted basis, volume was up 27.0 percent over the last Independence Day week and was down 17.4 percent from the same week in 2007.
Applications to refinance grabbed a 39.2 percent share of the market, up from 37.3 the previous week, but ARMs once again fell into the single digits, decreasing to a 9.1 percent share of the market from 10 percent a week earlier.