Mortgage Rates in U.S. Uptick Higher Amid Financial Market Volatility

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According to Freddie Mac's latest Primary Mortgage Market Survey (PMMS), the averaged fixed mortgage rate ticked higher amid another week of volatile market activity on essentially no new information.

Freddie Mac chief economist Sean Becketti said, "Fasten your seat belts. It's going to be a bumpy night," said Bette Davis in All About Eve. That could just as well have been Janet Yellen, or a specialist at the New York Stock Exchange, or the head of the People's Bank of China on yet another week with lots of volatility on essentially no new information."

"The 30-year mortgage rate increased 5 basis points, but don't read too much into that. The Fed took great pains at the Jackson Hole conference to keep all their options open and to avoid making too much -- or too little -- of the situation in China and the volatility in global equity markets. This Friday's employment report is the last piece of significant, solid evidence the FOMC will have to consider before their September decision. The Street appears to be calling it a coin flip. There won't be a clear direction for mortgage rates until the Fed makes its September decision, at the earliest."
 
Latest Freddie Mac Data:

• 30-year fixed-rate mortgage (FRM) averaged 3.89 percent with an average 0.6 point for the week ending September 3, 2015, up last week when it averaged 3.84 percent. A year ago at this time, the 30-year FRM averaged 4.10 percent.

• 15-year FRM this week averaged 3.09 percent with an average 0.6 point, up from last week when it averaged 3.06 percent. A year ago at this time, the 15-year FRM averaged 3.24 percent.

• 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.93 percent this week with an average 0.4 point, up from last week when it averaged 2.90 percent. A year ago, the 5-year ARM averaged 2.97 percent.

• 1-year Treasury-indexed ARM averaged 2.62 percent this week with an average 0.3 point, unchanged from last week. At this time last year, the 1-year ARM averaged 2.40 percent.