Mortgage rates remain unchanged on moderation of economic growth and inflation

• "Economic growth and the acceleration in inflation have moderated in the last month, giving the markets comfort and leading to a stabilization in mortgage rates," Freddie Mac’s Chief Economist Sam Khater commented
• 30-year fixed-rate mortgage averaged 2.87% for the week ending Sep 2, in-line with prior week levels and down from 2.93% averaged in same period a year ago, according to the Freddie Mac Primary Mortgage Survey.
• For the most of 2021, rates have continued to stay low defying expectations they would rise significantly; low cost of financing is supported by the Federal Reserve's continued, aggressive monthly asset purchases.
• Khater further added, "Heading into the fall, home purchase demand is stable, home sales remain firm and above pre-pandemic levels, and inventory of unsold homes is tight but improving modestly. These factors will allow for home price pressures to ease over the remainder of the year."
• 15-year FRM averages 2.18% marginally up from last week when it averaged 2.17% and down from 2.42% in year ago.
• 5-year Treasury-indexed hybrid adjustable rate mortgage averaged 2.43%, up from 2.42% in prior week, and lower from 2.93% a year ago.
• Mortgage applications fell 2.4% for the week ending Aug. 27, with a marked drop in refinance applications, according to the latest report from the Mortgage Bankers Association.
• "Recent uncertainty around the economy and pandemic have kept rates low over the past month, which is why the refinance index has oscillated around these levels," MBA's AVP, economic and industry forecasting Joel Kan commented.
• Applications for a mortgage to purchase a home rose 1% for the week but were 16% lower than a year ago.
• Last week, in a virtual address at the annual Jackson Hole, Wyoming economic symposium, Fed Chair Jerome Powell indicated that the central bank would continue its asset purchases at the current pace until “substantial further progress” is made toward employment and price stability goals.