By Ruth Mantell
WASHINGTON (MarketWatch) -- After recently hitting the highest rate in almost two years, the average rate for the 30-year fixed-rate mortgage fell to 4.29% in the week ending July 3, down from 4.46% in the prior week, Freddie Mac said Wednesday in its weekly report. The 4.46% reading was the highest since July 2011. "Fixed mortgage rates fell over the holiday week as market concerns over the timing of the Federal Reserve's pullback in bond purchases eased somewhat," said Frank Nothaft, Freddie Mac's chief economist. Including the recent decline, the average the 30-year fixed-rate mortgage has increased almost one percentage point since early May, and some are concerned about the impact on consumers, though rates remain relatively low by historical standards, and economists expect the housing market to continue rebound this year. A year ago, the 30-year rate averaged 3.62%. Meanwhile, the 15-year fixed-rate mortgage average declined in the latest week to 3.39% from 3.5% in the prior week. The average rate on the 5-year Treasury-indexed hybrid adjustable-rate mortgage rose to 3.1% from 3.08% in the prior week. The 1-year Treasury-indexed ARM remained at 2.66%.
