According to Bankrate, the 30 year fixed rate mortgage (FRM) is up two basis points since last week, and sits at 3.97%. Although the 30 year FRM is beginning to gradually rise, it is still much lower than the 4.70% rate year to date and slightly lower than the 4.04% rate that it was four weeks ago. In fact, the 30-yr FRM is only .03 percentage points greater than the 52-week low of 3.94%. Also gradually rising this week is the 15-year fixed rate mortgage which rose three basis points from 3.27% a week ago to 3.30%. Similarly, the 5/1-yr adjustable rate mortgages rose 8 basis points from 3.82% last week to 3.90% this week. After the six week run of falling mortgage rates came to an end last week, we are now seeing mortgage rates inch up.
On the other hand, Freddie Mac has the mortgages rates listed lower than Bankrate with the 30 year FRM at 3.75% up two basis points since last weeks 3.73%. The 15-year FRM follows suit with an upward trend of two basis points from 3.18% to 3.22%. Similar to Bankrate, we see the biggest mortgage rate increase with the 5/1 year ARM. However, Freddie Mac only has an increase of one basis point from 3.45% to 3.46%.
Below is a graph from Freddie Mac showing the U.S. weekly averages for 30-yr FRM, 15-yr FRM, and 5/1-yr ARM as of July 11, 2019.
With high consumer confidence and a strong labor market, the economy is still in great condition although the data suggests that there are signs of it weakening. Another important factor that we must asses is the decision of the Federal Reserve to hold off raising the federal funds rate. In fact, experts are expecting the Federal Reserve to lower the Federal Rate by .25% and possibly up to .50% at the end of July. As a result of this decision, we could see mortgage rates fall even lower than they are now.