Freddie Mac has recently released the results of the Primary Mortgage Survey that shows the 30-year fixed mortgage average at 5.14%.  At this time last year, the 30 year fixed mortgage averaged 6.4%.  The 15-year mortgage average for this week averaged 4.58%, and last year the 15-year was at 5.93%.  Five year adjustable rate mortgage averaged 4.67%, which has also been steadily decreasing.

“Long-term mortgage rates were barely changed this week, remaining historically low, which is helping to sustain a high level of affordability in the home-purchase market,” said Frank Nothaft, Freddie Mac vice president and chief economist.  

Low rates contributed to existing home sales rising for the fourth consecutive month to an annual pace of 5.24 million in July, the most since August 2007, according to the National Association of Realtors®.  Similarly, new home sales rose for the fourth month in a row to 0.4 million, the strongest pace since September 2008, the Commerce Department reported.  The sales gain helped to reduce the number of new unsold houses on the market to the lowest amount since March 1993.  In addition, house prices in June rose nationally for the second consecutive month, according to the Federal Housing Finance Agency’s purchase-only house price index.