Get Your Mortgage Rate Quote in Just 30 Seconds

Mortgage rates change every day, and your rate will vary based on your location, finances, and other factors. Get your FREE customized rate comparison below.

Tidal Wave Hits U.S.

Tidal Wave Hits U.S.30-year likely to hover below 6%

March 14, 2003

By SAM GARCIA

There appears to be no end in sight for the record mortgage rates and soaring applications that have fallen into the collective lap of U.S. mortgage originators. The biggest refinance wave in history just got bigger.Mortgage rates fell to their lowest level since at least the early sixties, with the average 30-year fixed rate mortgage coming in at 5.61%, according to Freddie Mac’s weekly survey. The 30-year is six basis points (BPS) lower than last week, and the lowest its been since Freddie began tracking it.

Freddie economist Amy Crews Cutts expects fixed-rates to stay around 5.7 percent in the near term. “The high volatility in interest rates is likely to remain for a while,” she said. “But since there are no upward pressures at the moment any sustained rise in rates is highly unlikely.”

The majority of participants in Bankrate.com’s weekly survey, which includes mortgage bankers, mortgage brokers and other industry experts, also expect rates to hover at their current level for the next few weeks.

The average 15-year fixed rate was down eight BPS from the prior week to 4.93%, according to Freddie, and the average one-year Treasury-based adjustable rate mortgage also fell eight BPS to 3.68%.

Fueled by record low interest rates, the refinance index jumped 35% to 8920.9, according to the Mortgage Bankers Association of America’s (MBAs) weekly survey of mortgage bankers, commercial banks and thrifts. This level of activity was inconceivable before September 11.

MBA reported that purchase applications barely edged down from the prior week, but overall applications were up 27% to a record index of 1603.1.

The 10-year Treasury yield, which had fallen to 3.59% yesterday, was up 16 BPS to 3.75% late Thursday. The price was down $1.375 to $101. The 44 year low for the 10-year is 3.57%, according to The New York Times.


Sam Garcia has been in mortgage lending since 1980, and is publisher of MortgageDaily.com. He also owns and operates CloseNow.com, a real estate portal site.

email: SamGarcia@MortgageDaily.com

Popular posts

7 Refinance Strategies
7 Refinance Strategies

Refinance to a lower interest rate: If interest rates have dropped since you took out your original mortgage, refinancing to a lower rate can help you save money on your monthly payments and reduce the overall cost of your loan. Refinance to a shorter loan term:...

7 Refinance Strategies
Is Refinancing With Your Present Lender Preferable?

Do Not Accept the First Refinancing Offer You Receive Homeowners should not accept the first refinancing rate provided to them. This is particularly important if you are applying with your existing lender. Some mortgage lenders have mechanisms in place that prioritize...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

Fannie Mae Profile

Fannie Mae Profile

Last Updated December 27, 2018 7:38 PM Central   full list | other directories | bank search | SEC...

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION