Mortgage rates were mostly lower this week according to Freddie Mac's weekly survey.
On the fixed-rate side, the 30-year was down five basis points to 6.47% after holding steady at 6.52% for three weeks. Fifteen-year product was seven basis points lower to 6%.
Meanwhile, the adjustable side was mixed with five-year hybrid ARMs averaging 5.99% versus 6.02% previously, while one-year ARMs gained 11 basis points to 5.29%.
"Even with the current historically affordable mortgage rates, news continues to show signs of weakening in the housing sector," Freddie Mac Chief Economist Frank Nothaft said.
As such, this does not bode well for mortgage application activity going forward.
Yesterday, the Mortgage Bankers Association reported the Refinance Index declined nearly 4% to 1035 for the week ending Aug. 15 holding at its lowest level since the end of 2000. Given everything the state of the housing market, tight underwriting standards, job concerns, low consumer confidence, mortgage applications are expected to see ongoing declines, leading prepayments to record lows.
