Mortgage Daily Logo
mortgage news from industry experts

Mortgage Rates Mixed and Unlikely to Change

Longer-term fixed rates moved up more this week than shorter-term rates. All signs point to little movement in fixed rates over the next seven days. While hybrid adjustable-rate mortgages were lower, the one-year ARM increased.

A 6-basis-point jump from last week left the 30-year, fixed-rate mortgage averaging 3.40 percent in Freddie Mac’s Primary Mortgage Market Survey for the week ended Jan. 10. The average 30 year was 49 BPS better than the same week during 2012.

Rates rose following Friday’s favorable employment report, according to Freddie Mac Chief Economist Frank Nothaft.

Mortgage rates are unlikely to be much different in Freddie’s next report based on Mortgage Daily’s analysis of this week’s Treasury market activity.

Data reported by the Department of the Treasury indicate that the yield on the 10-year Treasury note averaged 1.90 percent during the days that Freddie surveyed lenders for the latest report. The 10-year yield closed at 1.91 percent Thursday.

Also expecting no changes in mortgage rates over the next week were more than two thirds of panelists for the week Jan. 10 to Jan. 16. A quarter predicted a decline of at least 3 BPS, and only 8 percent forecasted a rise.

In the U.S. Mortgage Market Index report from Optimal Blue and Mortgage Daily for the week ended Jan. 4, jumbo mortgages were priced at a 31-basis-point premium over conforming rates, the same as the previous week.

At 2.66 percent, the average 15-year, fixed-rate mortgage was just 2 BPS worse than the week ended Jan. 3. The more favorable movement for the shorter-term mortgage increased the spread between 15- and 30-year mortgages to 74 BPS from only 70 BPS in the previous report.

A decline of 4 BPS was reported by Freddie for the five-year, Treasury-indexed, hybrid ARM, which averaged 2.67 percent in the current report.

Freddie said that the average one-year Treasury-indexed ARM moved up to 2.60 percent from 2.57 percent seven days earlier. The one year averaged 2.76 percent in the week ended Jan. 12, 2012.

One-year ARM borrowers could benefit from a recent decline in the ARM index, the yield on the one-year Treasury note. The Treasury Department reported the one-year Treasury yield at 0.14 percent as of Thursday, down from 0.15 percent a week earlier.

The one-year Treasury yield wasn’t the only ARM index to retreat; the six-month London Interbank Offered Rate was also lower. reported that LIBOR fell to 0.50 percent Wednesday from 0.51 percent a week earlier.

Nearly 3 percent of rate locks tracked in the latest Mortgage Market Index report were for ARMs. A week prior, ARM share was less than 2.5 percent.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


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