Fixed Rates Inch Up

Fixed Rates Inch Up

08/01/2013 BY: TORY BARRINGER

Fixed mortgage rates increased this week following the Federal Open Market Committee’s affirmation that it intends to stay the course on its bond purchasing policy.

According to Freddie Mac’s Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 4.39 percent (0.7 point) for the week ending August 1, up from 4.31 percent last week. Last year at this time, the 30-year fixed averaged 3.55 percent.

The 15-year FRM this week averaged 3.43 percent (0.7 point), up from last week’s 3.39 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.18 percent (0.6 point), up from 3.16 percent in the last survey. The 1-year ARM averaged 2.64 percent (0.4 point), down slightly from 2.65 percent.

Bankrate.com’s weekly national survey also showed interest rates climbing slightly. The 30-year fixed average rose to 4.59 percent this week, while the 15-year fixed rose to 3.65 percent.

The 5/1 ARM, meanwhile, was at 3.57 percent, up a few basis points.

“Investors in bonds, to which mortgage rates are closely related, are taking a cautious approach regarding possible tapering of Fed stimulus,” Bankrate said in a release. “The slow growth economy, high unemployment, and low inflation make it unlikely the Federal Reserve will need to dial back their stimulus as soon as September. But the looming jobs report and lineup of economic releases in the coming days make bond investors unwilling to stick their necks out.”

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