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Mortgage Rates Increase In Weeks

Mortgage rates, or interest rates on home loans, which dropped to sub-3 percent mark last week, rose for the first time in weeks, according to mortgage provider Freddie Mac (FMCC.OB).

Releasing the results of its primary mortgage market survey, Freddie Mac said that the 30-year fixed-rate mortgage or FRM averaged 3.01 percent for the week ending July 23, 2020, up from 2.98 percent last week. A year ago at this time, the average rate was 3.75 percent.

The 15-year FRM this week averaged 2.54 percent, up from 2.48 percent last week. A year ago at this time, the 15-year FRM averaged 3.18 percent.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage or ARM averaged 3.09 percent, up from 3.06 percent last week. It was 3.47 percent a year ago.

"While housing demand continues to rebound, the month-long swoon in economic activity has caused the 10-year Treasury benchmark to drop. In the short-term, this means the demand will continue on the back of near record low mortgage rates," said Sam Khater, Freddie Mac's Chief Economist. "However, the most recent consumer spending data has been pointing to slow growth since mid-June. The concern is that the pause in economic activity will cause unemployment to remain elevated which will lead to longer-term labor market distress."

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