Mortgage Daily

Published On: June 11, 2015

Fixed rates on home loans soared to the highest level since October. But some market indicators point to a decline in the next report.

In Freddie Mac’s Primary Mortgage Market Survey for the week ended June 11, thirty-year fixed rates averaged 4.04 percent.

Thirty-year fixed mortgage rates haven’t been this high since the week ended Oct. 9, 2014, when the average came in at 4.12 percent.

The latest 30 year was 17 basis points worse than in the previous survey but 16 BPS better than in the same week last year.

Freddie Mac Deputy Chief Economist Len
Kiefer said mortgage rates followed Treasury yields higher on a solid employment report.

“Markets are responding to strong employment data,” Kiefer said in the report. “In May, the U.S. economy added 280,000 jobs.

“Moreover, job openings surged to 5.4 million in April, up over 20 percent from a year ago.”

Joe Farr, a director at MBSQuoteline, noted that rates have risen since Freddie conducted this week’s survey.

But Treasury market data analyzed by Mortgage Daily indicates that fixed mortgages rates could be in the range of five BPS lower in Freddie’s next survey.

However, most of the panelists surveyed by Bankrate.com for the week June 11 to June 17 predicted that rates will rise by at least three BPS over the next week. A fifth forecasted no change, and none expected a decline.

On jumbo mortgages,
30-year fixed rates averaged 15 BPS more than on conforming loans, according to the U.S. Mortgage Market Index report from Mortgage Daily and Loan Sifter. The jumbo-conforming spread thinned from 18 BPS one week prior.

Fifteen-year fixed rates averaged 3.25 percent in Freddie’s most-recent survey, 17 BPS higher than in the week ended June 4. With 15-year rates moving in tandem with 30-year rates, the spread between short- and long-term fixed rates was unchanged from a week earlier at 79 BPS.

Freddie reported average five-year, Treasury-indexed, hybrid, adjustable-rate mortgages at 3.01 percent, up five BPS from seven days earlier.

Unlike the other mortgage products tracked by Freddie, the one-year Treasury-indexed ARM was down six BPS from the previous report to 2.53 percent. One-year ARMs averaged 2.40 percent in the week ended June 12, 2014.

As of the close of business Thursday, the yield on the one-year Treasury note was 0.28 percent, a basis point less than seven days earlier, according to Treasury Department data.

The six-month London Interbank Offered Rate — or LIBOR — was 0.44 percent as of Wednesday,
rising from 0.42 percent one week prior, according to Bankrate.com.

ARM share was 9.1 percent in the most-recent Mortgage Market Index report.

FREE CALCULATORS TO HELP YOU SUCCEED
Tools for Your Next Big Decision.

Amortization Calculator

Affordability Calculator

Mortgage Calculator

Refinance Calculator

FHA Mortgage Calculator

VA Mortgage Calculator

Real Estate Calculator

Tags

Pre-Approval Resources!

Making well educated decions in a matter of minutes and stay up to date on the latest news Mortgage Daily has to offer. Read our latest articles to stay up to date on what’s going on…

Resource Center

Since 1998, Mortgage Daily has helped millions of people such as yourself navigate the complicated hurdles of the mortgage industry. See our popular topics below, search our website. With over 300,000 articles, we are guaranteed to have something for you.

Your mortgages approval starts here.

Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here. Add 1-2 sentence here.

Stay Up To Days with Today’s Latest Rates

Mortgage

Today’s rates starting at

4.63%

5/1 ARM
$200,000 LOAN

Home Refinance

Today’s rates starting at

4.75%

30 YEAR FIXED
$200,000 LOAN

Home Equity

Today’s rates starting at

3.99%

3 YEAR
$200,000 LOAN

HELOC

Today’s rates starting at

2.24%

30 YEAR FIXED
$200,000 LOAN