Mortgage rates in the U.S. edged up slightly this week on positive economic reports after remaining flat for about two weeks, according to Freddie Mac's latest primary mortgage market survey.
The average 30-year-fixed mortgage rates went up to 4.14 percent from last week's 4.12 percent. Last year during this time, the rate was 4.40 percent.
The average 15-year-fixed mortgage rates went up 0.6 percentage points to 3.27 percent from last week's 3.23 percent. It averaged 3.43 percent at the same time, last year.
The treasury-indexed adjustable mortgage rates witnessed a decline though.
The five-year treasury-indexed hybrid adjustable mortgage rate fell 0.5 percentage points to 2.98 percent from last week's 3.01 percent. The rate was 3.19 percent a year ago.
The average one-year treasury-indexed adjustable mortgage rate also went down 0.5 points to 2.35 percent, down from last week's 2.38 percent. The rates averaged 2.62 percent at the same time last year.
Experts attributed this slight increase to positive economic reports - better employment and a spike in the non-manufacturing index.
"The employment report information from last week played in the favor of mortgage rates," Shaun Guerrero, sales manager at Fairway Independent Mortgage, told Realtor.com.
"Rates seem to have settled into a comfort zone for the time being," he added.
"When it comes to mortgage rates, I use the airline analogy: 'It's better to be on the ground wishing you were in the air than in the air wishing you were on the ground.' In other words, with the highly-publicized issues happening overseas, the market could take a turn for the better or the worse. If you have a rate that fits you, secure it. Don't leave your finances up in the air," Guerrero emphasized further.
Mortgage applications also rose for the week ended Friday Aug, 01. According to the Mortgage Banking Association's numbers cited by Reuters, their refinancing application index rose 3.8 percent. But, the new home purchase application index fell 1.3 percent.
Industry experts said that more Americans are realizing that they should take advantage of the mortgage rates while they still remain at record lows, which may have triggered the slight increase in mortgage rates this week, reports Bloomberg.
The U.S. housing market has been showing evident signs of a slowdown - sales have been low, prices have been stumpy and foreclosures have been 186 percent above the peak time before the market crash. But, specialists advice that this might be the best time for buyers to make a real estate investment.
