On August 22nd Freddie Mac released the results of their weekly Primary Mortgage Market Survey, reporting an increase in rates. The survey showed that the 30 year fixed rate mortgages averaged 4.58 percent. This was up from last week when the average was 4.4 percent and also up from one year ago when the average for a 30 fixed loan was 3.66 percent. Mortgage rates followed the upward trend of bond yields as the market anticipated the release on August 21st of the minutes of the Federal Open Market Committee meeting
that was held at the end of July. Home sales for July, which were also released this week were very strong, which would help to drive up interest rates. National figures for home sales
were up 6.5 percent and Austin home sales
were up an incredible 35 percent from last year at this time. Although rates have risen sharply since May, the rates are still low in the broader historical context and affordability remains high.