Average U.S. mortgage rates were little changed, in the week ended July 10, 2014, on a stronger job report and recovering economic data, according to Freddie Mac's latest mortgage market survey.
The survey revealed that the average 30-year-fixed mortgage rates slightly inched up to 4.15 percent this week from the 4.12 percent last week. Last year duing tis time, the rate was 4.51 percent.
The average 15-year-fixed mortgage rates went up 0.06 percentage points to 3.24 percent from last week's 3.22 percent. It averaged 3.53 percent at the same time, last year.
The five-year adjustable mortgage rate averaged 2.99 percent, up from last week's 2.98 percent. The rate was 3.26 percent a year ago. The average one-year treasury-indexed adjustable mortgage rate also went up 0.4 points to 2.40 percent, up from last week's 2.38 percent.
Though the rates have slightly gone northwards, they remain at record lows. Experts attribute the slight increase to a strong job growth and better economic data.
"Mortgage rates increased for the week as the labor market appears to be improving. Based on the employment report [PDF], released last week, the U.S. economy added 288,000 jobs in June, gained 224,000 in May and increased by 304,000 in April. Also, the unemployment rate in June fell to 6.1 percent from 6.3 percent in May," Frank Nothaft, chief economist and vice president at Freddie Mac, said in a statement.
In a recent economic forecast, Fannie Mae revealed that the U.S. housing market will experience a modest rebound in the remaining six months of 2014. The first half of the year wasn't very good for the real estate market as the cold winter froze buying and selling activity. The spring market picked up some steam and slowly now, the market is gathering traction.
"Economic growth should be stronger the second half of this year, averaging approximately 3.0 percent, as our rationale for a positive impulse from the private sector has not changed. We expect growth to come in at 2.1 percent for all of 2014, half a percentage point below the 2013 pace because of the weak start to the year," the report states citing four major indicators that includes mortgage rates.
In a previous report, experts said that the home buyers were keeping careful watch on the market and the economy and were maintaining caution before investing in property. The positive economic data should help boost buying activity now.
Just before the release of Freddie Mac's mortgage rates, the Mortgage Bankers Association revealed that the number of home loan applications posted a "solid jump" with demand for loans rising by 1.9 percent in the week ended July 4.
