WASHINGTON, Aug. 1 (Xinhua) -- Mortgage rate remained steady in the United States last week, the U.S. Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, said on Thursday.
For the week ending Aug. 1, 30-year fixed-rate mortgage (FRM) in the United States remained at 3.75 percent. 30-year FRM, the benchmark mortgage rate, was significantly lower than the previous year. In the same period a year ago, the 30-year FRM averaged 4.6 percent.
However, Freddie Mac noted that the 15-year FRM increased to 3.2 percent this week, higher than the previous week's reading of 3.18 percent. The figure was 4.08 percent for the same period a year ago.
"Mortgage rates have essentially stabilized over the last two months, which reflects the recovery and improvement in the economy from the malaise earlier in the year," said Sam Khater, chief economist of Freddie Mac.
"Going forward, the combination of low mortgage rates, tight labor market and high consumer confidence should set up the housing market for continued improvement in home sales heading into the late summer and early fall," Khater added.
Freddie Mac is a corporation founded by the U.S. Congress with an aim to promote the stability and affordability in the U.S. housing market by purchasing mortgages from banks and other loan makers. It has been conducting weekly surveys on U.S. mortgage rate since April 1971.
