For the first time in six weeks, mortgage rates increased as Treasurys sold off as risk on heated up after remarks last week from European Central Bank (ECB) President Mario Draghi about "doing whatever it takes" to save the euro. He talked a good talk, but markets are still left waiting for action after today's ECB statement and risk off is in full swing again. Next up: employment.
Freddie Mac reported this morning that the 30-year fixed mortgage rate averaged 3.55% for the week ending Aug. 2, up six basis points from last week, with the no-point rate at 3.73%.
This is likely to stall refinance activity which has surged 25% in the three weeks ending July 27 as mortgage rates dropped to a historical low of 3.49% from a low at the time of 3.62%.
The 15-year fixed and 5/1 hybrid ARM rates were also higher by three and one basis point, respectively, to 2.83% and 2.75%. Meanwhile, one-year ARMs slipped one basis point to 2.70%.