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Sinking Mortgage Rates May Attract New Buyers

Mortgage rates or interest rates on home loans inched up for the first time in 7 weeks, however continues to hover at low-levels, according to mortgage provider Freddie Mac.

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 4.53 percent for the week ending July 12, 2018, up from last week's 4.52 percent. A year ago at this time, the average rate was 4.03 percent.

The 15-year FRM this week averaged 4.02 percent, up from 3.99 percent last week. A year ago at this time, the 15-year FRM averaged 3.29 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 3.86 percent, up from last week's 3.74 percent. It was 3.28 percent a year ago.

Sam Khater, Freddie Mac's chief economist, says mortgage rates were mostly unchanged, but did tick up for the first time since early June.

"The 10-year Treasury yield continues to hover along the same narrow range, as increased global trade tensions are causing investors to take a cautious approach," he said. "This in turn has kept borrowing costs at bay, which is certainly welcoming news for those looking to buy a home before the summer ends."

Added Khater, "A record number of people quit their job last month, most likely for a new opportunity with higher wages and better benefits. This positive trend, along with these lower mortgage rates, should increasingly give some previously priced-out prospective homebuyers the financial wherewithal to resume their home search."

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