Mortgage rates’ rise stalls amid weak data

Investors turned off by rising home prices and sluggish sales.

Fixed mortgage rates’ upward climb stalled this week as weak housing data put a damper on investors’ enthusiasm.

According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average remained at 3.83 percent with an average 0.6 point, same as it was a week ago. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.42 percent a year ago.

The 15-year fixed-rate average was also flat, holding steady at 3.13 percent with an average 0.5 point. It was 2.72 percent a year ago. The five-year adjustable rate average rose to 3.20 percent with an average 0.5 point. It was 3.17 percent a week ago and 2.81 percent a year ago.

Recently released data showed the housing market slowed down in August — pending sales of homes fell 2.6 percent and existing sales of homes fell 1.7 percent. Both measures have declined in four of the past five months. New home sales dropped 1.7 percent.

Home prices continue to rise. The Standard & Poor’s/Case-Shiller index gained 5.9 percent in July as constrained supply has put upward pressure on prices.

In a speech this week, Federal Reserve Chair Janet Yellen spoke of the central bank “moving too gradually” when raising interest rates. Because of her remarks and despite this year’s low inflation, investors continue to anticipate a rake hike in December.

Rising home prices and mortgage rates are likely to cause a bigger slowdown in the housing market.

Bankrate.com, which puts out a weekly mortgage rate trend index, found that the experts it surveyed have differing opinions on where home loan rates are headed. A majority say rates will fall, a third say they will rise and a quarter say they will remain relatively stable in the coming week.

Brett Sinnott, vice president of capital markets at CMG Financial, is one who expects rates will level off in the coming week.

“Although mortgage rates felt a little increase after last week’s Fed meeting, they have remained relatively flat since that time,” Sin-