Long-term fixed rates, which already stood at a low for the year, maintained their position and are unlikely to rise in the next report.
There was no variance from last week in 30-year fixed rates, which averaged 4.10 percent in Freddie Mac’s Primary Mortgage Market Survey for the week ended Aug. 28.
Thirty-year mortgage rates remain at their lowest levels this year, according to historical data from McLean, Va.-based Freddie.
But Freddie’s latest report showed that long-term mortgages rates have improved by 41 basis points compared to a year ago.
Conforming 30-year fixed rates averaged 4.34 percent in July, the Federal Housing Finance Agency reported, the same as in June.
In Freddie’s next survey, 30-year rates are likely average around 4 BPS less, based on an analysis of Treasury Department Data.
During the survey period, the 10-year Treasury yield — a benchmark for fixed mortgage rates — averaged 2.38 percent, while the 10-year yield fell to 2.34 percent Thursday.
Almost two-thirds of Bankrate.com panelists surveyed for the week Aug. 28 to Sept. 3 expected that mortgage rates won’t move more than 2 BPS over the next week or so. The remaining 36 percent were evenly split about whether rates would rise or fall.
Thirty-year fixed-rates are expected to average 4.2 percent in the third quarter, according to the Mortgage Bankers Association’s Mortgage Finance Forecast this month. Then they’ll climb to 4.6 percent the following quarter and ascend to 4.9 percent during the first three months of next year.
The spread between jumbo and conforming rates swung to a positive 2 BPS from a negative 12 BPS a week earlier, according to the Mortgage Market Index report from LoanSifter/Optimal Blue and Mortgage Daily for the week ended Aug. 22.
Freddie’s survey had 15-year fixed rates averaging 3.25 percent, 2 BPS worse than in the survey for the week ended Aug. 21. Fifteen-year mortgages lost some of their appeal as the spread between 15- and 30-year loans thinned to 85 BPS. In Freddie’s previous report, 15-year rates were 87 better than 30-year rates.
A 2-basis-point increase also hit hybrid adjustable-rate mortgages, which averaged 2.97 percent in Freddie’s latest report.
At 2.39 percent, one-year Treasury-indexed ARMs averaged 1 basis point more than the prior report. In Freddie’s survey for the week ended Aug. 29, 2013, one-year ARMs averaged 2.64 percent.
One-year ARM payments and rates adjust based on the one-year Treasury yield, which inched up a basis points from one week earlier to 0.11 percent Thursday, the Treasury Department reported.
The six-month London Interbank Offered Rate — or LIBOR — was 0.33 percent Wednesday, the same as a week earlier, Bankrate.com reported.
ARM share was 11.0 percent in the most recent Mortgage Market Index report, about the same as it was in the week ended Aug. 15.
