Mortgage rates followed Treasury yields higher to an average of 4.22 percent while data reports suggest an improvement in housing.
Freddie Mac today released the results of its Primary Mortgage Market Survey in which the 30-year fixed-rate mortgage (FRM) averaged 4.22 percent with an average 0.7 point for the week ending August 25, 2011, up from last week when it averaged 4.15 percent. Last year at this time, the 30-year FRM averaged 4.36 percent.
Frank Nothaft, vice president and chief economist at Freddie Mac, reports, “Fixed mortgage rates followed Treasury bond yields higher while data reports suggest an improvement in the housing market. The Federal Housing Finance Agency national House Price Index rose for the third straight month in June bolstered by a 3.3 percent gain in the East North Central Census Division. In addition, the Mortgage Bankers Association reported that the delinquency rate on mortgages outstanding fell for the sixth consecutive quarter at the end of June to 7.85 percent.”
Primary Mortgage Market Survey [Freddie Mac]