Mortgage Rates Relent – Interest rate news from MortgageDaily.com
DALLAS, June 5 /PRNewswire/ Fueled by disappointing employment data, mortgage rates got a welcome reprieve Friday from what had been an unrelenting ascent, according to MortgageDaily.com, the dominant source of online news for the mortgage industry.
The 10-year Treasury yield, a benchmark for mortgage-rate watchers, closed down 11 basis points Friday at 4.99%. Worse-than-expected employment numbers released from the Department of Labor fueled the Treasury rally.
Data collected and analyzed by MortgageDaily.com indicate the Monthly Treasury Average, or MTA, has increased each month since April 2004. The MTA, used as an index for adjustable rate mortgages, is a 12-month average of the monthly 1-year Treasury.
Another ARM index, the 11th District Cost of Funds Index — popularly known as COFI, was 3.759% during April, about 14 basis points higher than the prior month and the highest it has been since the terrorist attacks on the United States in 2001. COFI is reported by the Federal Home Loan Bank of San Francisco.
The 6-month London Interbank Offered Rate, also known as the 6-month LIBOR, rose to 5.3215% in May — its highest level in five years, according to Fannie Mae. LIBOR is a common index among nonprime adjustable-rate loans.
As for fixed rates, the 30-year could average anywhere from 6.6% to 6.8% during the next quarter, according to the latest forecasts by Fannie, Freddie Mac and the Mortgage Bankers Association.
Government regulators and class-action lawyers are on the prowl for mortgage lenders that use unfair pricing tactics, a panelist told a group of nonprime mortgage bankers in Washington D.C. recently. He said a recent organizational split at the Federal Trade Commission appears to have freed up the federal agency’s attorneys to investigate loan pricing issues.
Read complete coverage of mortgage rates, ARMS and Treasury markets at https://www.mortgagedaily.com/Rates.asp
About MortgageDaily.com
Founded in 1998, MortgageDaily.com is the dominant online news source for the mortgage industry. Around one million mortgage business news pages are viewed monthly at MortgageDaily.com and its affiliate publications.
CONTACT:
Carmen Garcia
214.521.1300
3811 Turtle Creek Blvd.
Suite 700
Dallas, TX 75219
Source:Â MortgageDaily.com
