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3.94: Mortgage Rates Inch Up

by Tianna Mañón

3.94: Mortgage Rates Inch Up: Figure 1

A recent U.S. jobs report and the turmoil in the Chinese economy have caused long-term mortgage rates to inch up a bit.

Freddie Mac reported that the 30-year fixed-rate mortgage averaged 3.94 percent with a 0.6 point this week. A year ago, the rate sat at 4.12 percent. Interestingly, in December 2011 this week’s rate was a record low.

Freddie Mac’s chief economist Sean Becketti stated that both domestic and foreign economic factors played roles in the rate not moving very much.

“The jobs report for July showed that the economy added 215,000 jobs, in line with expectations,” Becketti said. “Wage growth remains modest at 2.1 percent compared to the same time last year, and another solid if not stellar employment report leaves a potential Fed rate hike on the table for September. However, this year’s theme of overseas economic turbulence continues with the focus shifting east to China. Over the past few days the Chinese Yuan has fallen sharply.”

He added that as we head into fall, tension will continue to play a role in the rates, “with dollar appreciation weighing against possible Fed rate hikes leaving the rate outlook clouded.”

UrbanTurf is following the trajectory of rates in this chart:

3.94: Mortgage Rates Inch Up: Figure 2

The UrbanTurf Mortgage Rate Disclaimer: The rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate.

This article originally published at http://dc.urbanturf.com/articles/blog/3.94_rates_inch_up_amid_tension/10239

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