The latest weekly average for long-term rates on residential loans saw an increase, and there’s a good chance they will stay there.
For the week ended Sept. 15, thirty-year fixed rates averaged 3.50 percent in Freddie Mac’s Primary Mortgage Market Survey.
The 30 year climbed higher from a week prior, when it averaged 3.44 percent, but was down from 3.91 percent one year previous.
A Mortgage Daily analysis of Treasury market activity over the past week indicates that fixed rates are not likely to be much different in Freddie’s next survey.
But only a quarter of panelists surveyed by Bankrate.com for the week Sept. 14 to Sept. 20 agreed with Mortgage Daily’s forecast. A majority, 58 percent, predicted an increase of at least 3 BPS over the next week, and just 17 percent expected a decline.
In the
MBA Mortgage Finance Forecast, the Mortgage Bankers Association predicts that 30-year fixed rates will average 3.5 percent in the third quarter then rise 20 BPS every three months after that through the third-quarter 2017.
Interest rates on jumbo mortgages were 3 BPS higher than conforming rates, according to the U.S. Mortgage Market Index from OpenClose and Mortgage Daily for the week ended Sept. 9. The jumbo-conforming spread widened from 2 BPS the previous week.
Freddie’s survey had 15-year fixed rates averaging 2.77 percent, only a basis point more than in the week ended Sept. 8. The spread between 15- and 30-year rates ballooned to 73 BPS from just 68 BPS in the last report.
A 1 basis point rise from Freddie’s report a week previous left five-year, Treasury-indexed, hybrid, adjustable-rate mortgages averaging 2.82 percent.
As of Thursday, HSH.com reported the rate on the one-year ARM at 2.63 percent, tumbling from 2.85 percent seven days earlier.
In the week ended Sept. 17, 2015, Freddie previously reported that one-year ARMs averaged 2.56 percent.
Data from the Department of the Treasury indicate that the yield on the one-year Treasury note — which is the index for one-year ARMs — closed Thursday at 0.60 percent, rising from 0.58 percent seven days prior.
Bankrate.com reported that the six-month London Interbank Offered Rate was 1.25 percent as of Wednesday, no different than as of the same day last week.
The most-recent Mortgage Mortgage Index report had ARM share at 6.1 percent, thinning from 6.5 percent the previous week.
