|Requests for mortgages edged down while rates slowly headed higher again.
The 30-year fixed-rate mortgage averaged 6.17%, only 1 basis point above last week, Freddie Mac’s latest survey of 125 mortgage-lending companies, thrifts and commercial banks showed. At this time a year ago, the average was 6.43%.
“Mortgage rates have remained within a narrow band of 0.1 percentage points over every week in March,” said Frank Nothaft, Freddie chief economist, in an announcement. “This relative stability is due to mixed economic data releases as to how strong the economy is and whether future inflation will recede.
“Looking forward, the upcoming March employment report and producer price index should offer further insight into the current state of the economy and give us an idea where interest rates are headed in the future.”
For the quarter, the Mortgage Bankers Association sees the 30-year averaging 6.4%, while the National Association of Realtors has it at 6.5%, according to their latest outlooks.
At 5.87%, the 15-year average also edged up 1 BPS over the level a week ago, Freddie said.
The long-term mortgage rate benchmark, the 10-year Treasury note, yielded 4.67% late today, climbing from 4.63% last Thursday.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage reportedly averaged 5.92%, rising 4 BPS from a week earlier.
The 1-year Treasury-indexed ARM averaged 5.44%, or 1 BPS more than last week, Freddie reported. The index, or 1-year T-bill, inched up 2 BPS within a week to 4.92% Wednesday, according to Federal Reserve data.
ARM share edged down to 19%, MBA reported Wednesday.
During the last week of March, originators completed about 3 percent fewer mortgage applications, as refinance requests fell 5 percent from the prior week and purchase money loan demand decreased 2 percent, MBA said. The refinance share of mortgage applications remained at 45%.
Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.e-mail: MortgageWriter@aol.com
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