Fixed mortgage rates inch up

Aug. 9, 2012 at 11:40 AM
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MCLEAN, Va., Aug. 9 (UPI) -- Fixed rates for U.S. home loans rose higher because of the recent stronger-than-expected employment report, Freddie Mac reported Thursday.

The 30-year fixed averaged 3.59 percent and the 15-year fixed averaged, 2.84 percent, still near the historic low, the Federal Home Loan Mortgage Corp., based in McClain, Va., said in a release.

"Fixed mortgage rates inched up again this week following stronger-than-expected employment reports. The economy added 163,000 jobs in July, well above the market consensus forecast of 100,000, and the largest increase since February," Freddie Mac Vice President and Chief Economist Frank Nothaft said. "In addition, the number of announced corporate layoffs fell 45 percent in July compared to last July ... according to The Challenger Report. This suggests further net gains in employment are likely in the near future."

The five-year, Treasury-indexed adjustable-rate mortgage averaged 2.77 percent this week, up from last week when it averaged 2.75 percent. A one-year ARM averaged 2.65 percent this week, down from last week when it averaged 2.70 percent.

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