Federal Home Loan Mortgage Corp (OTCBB:FMCC) issued the Primary Mortgage Market Survey® report, highlighting average fixed mortgage rates almost unchanged compared to the previous week figures amid low volatility in financial markets. The thirty-year fixed rate mortgage rate came below 4% for the fifth week in a row.
The highlights
Federal Home report stated that thirty-year FRM came at 3.93% for the week completed August 20, 2015 compared to 3.94% in the prior week. A year earlier, at the same time, the thirty-year FRM stood at 4.10%. Also, the fifteen-year FRM stood at 3.15% against 3.17% in prior week and 3.23% in the same period, a year earlier.
The five-year Treasury-indexed hybrid ARM came at 2.94% in reported period compared to 2.93% a week earlier and 2.95% in the same period, last year. The one-year ARM stood at 2.62% unchanged from prior week.
The expert speak
Sean Becketti, the Chief Economist at Federal Home, stated that there was hardly any movement recorded in financial markets this week. The thirty-year FRM remained steady, declining just one basis point. In the month of July, inflation surged 0.2% YOY, but core inflation stood at 1.8% keeping prospects alive for a probable hike in interest rates in September.
The housing industry reacted well to low mortgage rates as the latest NAHB Index in August was 61. It is at the highest level in over nine years. Federal Home report revealed that one-unit housing in July surged to 782,000 units, up 12.8% from prior month and up 19% from 2014. The overall housing industry is believed to be on track in this year.
In last trading session, the share price of Federal Home declined more than 3% to close the trading session at $2.10. The decline came at a share volume of 3 million compared to average monthly share volume of 1.83 million. The market cap stands at $1.37 billion.
