Fixed mortgage rates continued to follow bond yields higher leading up to the Aug. 21 release of the Federal Reserve monetary policy committee’s minutes for July, said Frank Nothaft, vice president and chief economist, Freddie Mac.
In its July 30 and 31 meetings, the committee members were broadly comfortable with a plan to start reducing its bond purchases later this year, although a few emphasized the importance of being patient.
Rates for shorter-term hybrid and adjustable-rate mortgage products in the survey were more stable during the week ending Aug. 22, compared to the week before.
The average rate for a five-year Treasury-indexed hybrid loan was two basis points lower at 3.21% and the average rate for a one-year Treasury-indexed ARM was unchanged at 2.67%.
Average points were as follows during the most recent week: 0.8 of a point for 30-year fixed-rate mortgages, 0.7 of a point for 15-year FRMs, and 0.5 of a point for five-year Treasury-indexed hybrid loans and one-year Treasury ARMs.