31
Aug
12

Mortgage Rates Slip as Investors Wonder About Stimulus

After a month of weekly increases, mortgage rates followed Treasury bond yields down this week.

Freddie Mac reported that the 30-year fixed averaged 3.59 percent (0.6 point) for the week ending August 30, down from 3.66 percent in the previous week’s survey.

The 15-year fixed also fell, dropping to 2.86 percent (0.6 point) from 2.89 percent.
In addition, both the 5-year and 1-year adjustable rate mortgage averages fell, declining to 2.78 percent (0.6 point) and 2.63 percent (0.4 point), respectively.

Frank Nothaft, VP and chief economist for the GSE, said the declines follow economic news that may indicate another stimulus is on the way.

“Treasury bond yields fell, allowing mortgage rates to follow, after the release of the July 31 and August 1 minutes of the Federal Reserve’s monetary policy committee,” Nothaft said. “Committee members agreed that economic activity had decelerated more in recent months than they had anticipated at their last meeting in June. Some members even saw room for additional stimulus fairly soon if need.”

Despite the overall waning of the economy, Nothaft was quick to note that the housing market has gained more ground.

To read full article, CLICK HERE

Article by:Tory Barringer, dsnews.com

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