|
|||
Ahead of rising rates, more prospective borrowers visited mortgage shops.
The 30-year fixed-rate mortgage averaged 6.33 percent, up 2 basis points from last week, Freddie Mac said in its latest survey of 125 mortgage-lending companies, thrifts and commercial banks. A year ago, the average was 3 BPS higher. “Mortgage rates rose earlier in the week on news of large upward revisions over the past three months in employment figures, but began to drift lower as the market looked more deeply into the numbers,” said Frank Nothaft, Freddie chief economist, in a written statement. “For instance, in October the construction industry lost jobs, primarily due to the slowing housing market.” Freddie’s November outlook indicated that the 30-year’s average of 6.4% this quarter will rise to 6.5% next quarter instead of until the second quarter 2007 as predicted in October. Over the next 35 to 45 days, rates will rise, according to 44 of the 100 mortgage “expert” panelists surveyed by Bankrate.com this week. One-third of the panelists foresaw a downturn and the rest believed rates will remain relatively unchanged. The 15-year averaged 6.04 percent, also 2 BPS above a week ago, Freddie said. The 10-year Treasury note yielded 4.62% late today with a price of 101.91. A week earlier, the yield was at 4.59%. Up 3 BPS from last week to 6.08% was the 5-year Treasury-indexed hybrid adjustable-rate mortgage average, Freddie reported. The 1-year Treasury-indexed ARM average, at 5.55%, reportedly stepped up 2 BPS within the past seven days. The 1-year Treasury bill itself, at 5.02% Wednesday, rose 7 BPS from a week earlier, the Federal Reserve said. Mortgage hunters apparently responded to last week’s rate decreases as refinance requests jumped 11% for the week ending Nov. 3, the Mortgage Bankers Association reported on Wednesday. Purchase money loan applications rose 7%, boosting overall 1003 volume 9% above the previous week. Accordingly, the share of refinance applications increased from the prior week to 46% while ARM share edged up above 26%, MBA added. |
Coco Salazar is an assistant editor and staff writer for MortgageDaily.com. e-mail: [email protected]