Mortgage Daily Logo

Record Rates Elude Mortgage Shoppers

Rates

Mortgage rates, which had been on a record-breaking streak, turned higher this week. Similar rates could be on the horizon unless Friday’s employment report surprises investors.

There was a 6-basis-point increase from last week for the 30-year fixed-rate mortgage, which averaged 3.55 percent in Freddie Mac’s Primary Mortgage Market Survey for the week ended Aug. 2. The 30 year was 4.39 percent during this week last year.

Up until last week, the 30-year rate had either fallen or matched record-low levels during 13 out of the past 14 weeks.

Debt relief announced for the Eurozone along with mixed economic indicators buoyed Treasury yields and mortgage rates, according to Freddie’s chief economist, Frank Nothaft.

But the Federal Reserve Open Market Committee cast a pall over the market with a less than stellar assessment of the economy.

“Economic activity decelerated somewhat over the first half of this year. Growth in employment has been slow in recent months, and the unemployment rate remains elevated,” an FOMC statement Wednesday said — adding that the housing sector remains depressed. But the Fed did highlight some strength in household spending and advancements in business spending.

The mostly downbeat outlook helped push the yield on the 10-year Treasury note down to 1.51 percent Wednesday, based on Department of the Treasury data. Given that the 10-year yield averaged 1.53 percent during the period when Freddie conducted its surveys for the latest report, mortgage rates aren’t likely to be much different in Freddie’s next report.

However, if the employment report to be released tomorrow by the Labor Department comes in strong, rates could rise with the stock market.

A plurality — 42 percent –of panelists surveyed by Bankrate.com for the week Aug. 2, to Aug. 8 predicted mortgage rates won’t move more than 2 BPS during the next week. A third forecasted an uptick, and a quarter expected a decline.

Jumbo borrowers paid a 77-basis point premium over conforming borrowers based on the U.S. Mortgage Market Index report from Mortech Inc. and Mortgage Daily for the week ended July 27. The jumbo-conforming spread narrowed from 85 BPS in the prior report.

Freddie reported the average 15-year fixed-rate loan at 2.83 percent, up from 2.80 percent in the previous report. The more mild movement stretched the discount for a 15-year loan versus a 30-year mortgage to 72 BPS from the 69-basis-point spread the previous week.

A one-basis-point increase over the prior seven days put the five-year, Treasury-indexed, adjustable-rate mortgage at 2.75 percent in Freddie survey.

But the one-year Treasury-indexed ARM managed to fall to 2.70 percent from 2.71 percent in the previous report and 3.02 percent in the same week the previous year.

One-year ARM adjustments can be expected to be a little more favorable for borrowers based on the one-year Treasury yield, which fell to 0.17 percent today from 0.18 percent last Thursday, according to the Treasury Department.

The six-month London Interbank Offered Rate remained unchanged at 0.73 percent, according to Bankrate.com

ARM activity slowed in the Mortgage Market Index report by 8 percent from the prior week, while ARM share fell to 2.9 percent from 3.2 percent.

Related Posts

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Up 92 BPS From Year Ago

Over the past year, weekly fixed interest rates on single-family loans have soared 92 basis points. But little change was reported from last week, and more of the same is expected. On conventional loans utilized to finance a home purchase with amounts up to the...

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rate Forecasts Have Little Change Ahead

Thirty-year mortgage rates moved lower this past week and this past month. Short- and long-term forecasts have little movement ahead for mortgage rates. Ellie Mae Inc.'s Origination Insight Report | September 2018 indicated that average 30-year note rates on...

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Soar, Could Sink in Next Report

An expected surge in mortgage rates came to fruition this week. The latest forecast has fixed rates tumbling in next week's report. A new index for adjustable-rate mortgages moved lower. A stunning 19-basis-point surge from the preceding week left average 30-year...

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Dip, But Likely to Skyrocket

Mortgage rates retreated a modest amount just one week after climbing to a seven-year high. The next rate report, however, is likely to reflect significant escalation. Prospective 30-year borrowers using the LendingTree network during September were offered an average...

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Little Changed, More of Same Ahead

Over the past week, there was little change in interest rates on home loans. During the next week, more of the same is likely. Recently rising rates have helped the Federal Home Loan Banks' earnings. Conventional mortgages with conforming loan amounts used to finance...

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...

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