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Mortgage Rates Reverse Course

After rising for four straight weeks, mortgage rates fell this week. According to Freddie Mac’s Primary Mortgage Market Survey results, mortgage rates dropped this week despite the recent housing market improvements.

New home sales rose 3.6 percent in July matching the strongest month since April 2010. Similarly, Indiana real estate market activity outpaced 2011 for the seventh consecutive month. And, the National Home Price Index rose 1.2 percent between the second quarter of 2011 and 2012, nationally ranking two Indiana cities in the top 15.

  • 30-year fixed-rate mortgage (FRM) averaged 3.59 percent for the week ending August 30, 2012, down from last week when it averaged 3.66 percent. A year ago, the 30-year FRM averaged 4.22 percent.
  • 15-year FRM averaged 2.86 percent this week, down from 2.89 percent. Last year, the 15-year FRM averaged 3.39 percent.
  • 5-year adjustable-rate mortgage (ARM) averaged 2.78 percent, down from last week when it averaged 2.80 percent. A year ago at this time, the 5-year ARM averaged 2.96 percent.
  • 1-year ARM averaged 2.63 percent, down from last week when it averaged 2.66 percent. At this time a year ago, the 1-year ARM averaged 2.89 percent.

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