IEF - Mortgage rates reverses trend on strong jobs data first gain after consecutive three weeks drop

Post a strong jobs report last week which indicated broad based gains in employment and wage growth, mortgage rates have moved higher. 30-year fixed-rate mortgage averaged 2.87% for the week ending Aug 12, up from 2.77% recorded in prior week and down from 2.96% averaged in same period a year ago, according to the Freddie Mac Primary Mortgage Survey. "After dropping for six consecutive weeks, the 30-year fixed-rate mortgage increased by ten basis points week over week. Despite the rise, rates remain very low, particularly given that economic growth is strong and will continue into next year," chief economist Sam Khater commented. 15-year FRM averages 2.15% up from last week when it averaged 2.1% and down from 2.46% in year ago. 5-year Treasury-indexed hybrid adjustable rate mortgage averaged 2.44%, up from 2.40% in prior week, and lower from 2.90% a year ago. "Borrowers responded strongly to low mortgage rates. The mid-month surge was pronounced, but short-lived, suggesting that crossing the 3% threshold was

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Mortgage rates reverses trend on strong jobs data, first gain after consecutive three weeks drop