Home loan Rates Dip Back Below 4%

Average fixed mortgage rates continue to fluctuate week-to-week, with the 30-year fixed rate dropping beneath 4 percent this week, offering temporary relief  to home buyers and refinancers after hitting its highest average for the year earlier this month, Freddie Mac reports in its week by week home loan business sector study.

"The mortgage rate has bounced between 3.98 and 4.09 percent since the first week of June, falling a bit when events overseas take a turn for the worse when occasions abroad get ugly and and rising when the clouds appear ready to part," says Sean Becketti, Freddie Mac’s chief economist.  "With no clear direction coming from the Fed [this week], we expect more of the same in coming weeks

Freddie Mac reports the accompanying national average for the week finishing July 30:

•  30-year fixed-rate mortgages:average 3.98 percent, with a average 0.6 point, dropping from last week's 4.04 percent average. A year prior, 30-year rates average 4.12 percent.  Earlier this month, 30-year rates reached the highest average for the year at 4.09 percent.

•  15-year fixed-rate mortgages: average 3.17 percent, with a average 0.6 point, dropping below its 3.21 percentaverage a week ago. A year prior, 15-year rates average 3.23 percent.

•  5-year hybrid adjustable-rate mortgages:average 2.95 percent, with a average 0.4 point, dropping from last week's 2.97 percent average. A year ago, 5-year ARMs average 3.01 percent.

•  1-year ARMs: average 2.52 percent, with a average 0.3 point, decreasing from 2.54 percent the former week. A year back, 1-year ARMs average 2.38