Mortgage Daily Logo
mortgage news from industry experts

Mortgage Rates Slip, Could Move Up

With a dearth of economic data this week, interest rates on home loans meandered lower. But one indicator suggests rates could increase in the next report.

A 4-basis-point decline over the past seven days left 30-year fixed rates averaging 4.42 percent in Freddie Mac’s Primary Mortgage Market Survey for the week ended Dec. 12. Long-term rates were up 110 BPS, however, compared to a year earlier.

Frank Nothaft, Freddie’s chief economist, said there was little economic data to move interest rates up or down this week.

Notfhaft did note, however, that single family mortgage debt outstanding increased for the first time since 2008, “a positive sign as it reflects that the pick-up in new purchase-money originations has offset loan paydowns and led to a net increase in principal outstanding.”

Thirty-year rates could be around 5 BPS higher in Freddie’s next report based on an analysis of Treasury market activity.

Data reported by the Department of the Treasury indicates that the 10-year Treasury note yield averaged 2.84 percent during the days that Freddie surveyed lenders for this week’s report. The 10-year yield closed at 2.89 percent Thursday.

A majority of panelists surveyed by for the week Dec. 12 to Dec. 18 predicted that mortgage rates won’t move more than 2 BPS over the next week or so. A third forecasted an increase, and only 11 percent projected lower rates.

Jumbo mortgage rates were priced at an 85-basis-point premium over conforming rates in the U.S. Mortgage Market Index report from LoanSifter and Mortgage Daily for the week ended Dec. 6, surging from 37 BPS a week earlier.

Freddie reported 15-year fixed rates at an average of 3.43 percent, down from 3.47 percent in the week ended Dec. 5. Fifteen-year rates were 99 BPS cheaper than 30-year mortgages, the same spread as last week.

Five-year, Treasury-indexed, hybrid, adjustable-rate mortgages averaged 2.94 percent in Freddie’s report, 5 BPS better than last week.

One-year Treasury-indexed ARMs tumbled 8 BPS to 2.51 percent and were lower than 2.53 percent in the week ended Dec. 12, 2012.

As of Thursday, the yield on the one-year Treasury note — which serves as the index for one-year ARMs — was 0.14 percent, according to Treasury data. The one-year yield was 0.13 percent a week earlier. reported that the six-month London Interbank Offered Rate was 0.34 percent as of Wednesday. LIBOR didn’t move from the previous week.

ARM share was 3.9 percent in the latest Mortgage Market Index report, the same as a week earlier.

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