Mortgage rate averages were up slightly Tuesday as another rally in Treasury bond prices sent long term yields back to record lows. The National Association of Realtors® announced that sales of existing single-family homes hit a record pace of 4.93 million in July.

The 30 year fixed rate mortgage average gained 0.01% to 6.80% on Tuesday. Fifteen year fixed rate and 1 year ARM averages were unchanged at 6.50% and 5.60% respectively.

The yield on the benchmark 30 year Treasury bond closed at 5.43%, equaling the record low hit on Friday.

Stock prices were mostly up on Tuesday, although a big rally early in the day fizzled. The Dow Jones Industrial Average ended the day with a gain of over 36 points after being up over 100 points earlier in the day. Broader averages ended in positive territory for the day as well.

The retreat in stock prices over the last few weeks may have contributed to a decline in consumer confidence. The Conference Board reported that its widely watched index of consumer confidence dropped to 133.1 from 137.2 in July. This is the first time the index has dropped two months in a row since the fall of 1996.

Published: August 26, 1998

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