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| Mortgage rates and loan applications were worse this week. But indices for variable-rate loans improved as did government loan applications.
The 30-year fixed-rate mortgage averaged 6.13%, jumping 0.10% from a week earlier, Freddie Mac reported in its latest survey of 125 thrifts, commercial banks and mortgage lenders. The 30-year was barely changed from 6.14% reported for a year earlier. The average 15-year fixed rate was up even more — rising 13 basis points from the prior week to 5.60%, Freddie said. The yield on the 10-year Treasury, a benchmark for fixed rates, was 3.46% today, tumbling from 3.62% last week, according to data from CNNMoney. The Federal Reserve announced a plan Tuesday to lend up to $200 billion of Treasury securities for a 28-day term to primary dealers who pledge other securities, including federal agency debt, federal agency residential-mortgage-backed securities and non-agency AAA/Aaa-rated private-label residential MBS. That plan is expected to result in lower mortgage rates starting today. One-third of the 100 panelists surveyed by Bankrate.com for the week March 13 to March 19 predict rates will fall over the next 35 to 45 days, while two-thirds forecast no change. None see rates rising. Freddie reported that the average 5-year Treasury-indexed hybrid adjustable-rate mortgage soared 24 BPS this week to 5.58%. The 1-year Treasury-indexed ARM jumped 20 BPS from the prior week to 5.14%, according to Freddie’s survey. The 1-year Treasury itself yielded 1.58% yesterday, falling 14 BPS from a week earlier, according to data distributed by the U.S. Treasury Department. The 6-month London Interbank Offered Rate, or LIBOR, was 2.74 as of Thursday, down from 2.88% seven days earlier, according to Bankrate.com. Reflecting data from a week earlier, the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending March 7 said ARM share fell to 16% from 17% the prior week. Next week’s report will likely reflect a further decrease as a result of the narrowing margin between fixed rates and ARMs this week, while the subsequent week will probably show an increase in ARM share — reflecting the more recent 1-year Treasury activity. Originators completed slightly fewer loan applications this week, according to MBA’s survey. The decline was driving by a 5% decrease in refinance applications. Purchase applications, however, were up 2%, while government loan applications jumped 10%. Refinance share edged about 1% lower to 51% of total activity, MBA said. |
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