Mortgage Daily Logo

Fixed Rates Rise, ARMs Ease

Rates

Driven by relatively strong home price data, fixed mortgage rates moved higher this week. Adjustable rates, however, were slightly lower.

In its Primary Mortgage Market Survey for the week ended Nov. 27, Freddie Mac said that 30-year fixed rates averaged 4.29 percent.

The 30 year increased 7 basis points from a week earlier and was up 97 BPS compared to the same week last year.

“Fixed mortgage rates retraced some of their decline of the prior week as housing data portrayed mixed signals,” Freddie Mac Chief Economist Frank Nothaft said in the report.

Nothaft noted that the National Association of Realtors reported pending home sales were down for the fifth consecutive month.

But the S&P/Case-Shiller House Price index indicated prices in the 20 largest cities increased 13.3 percent annually in September, the highest year-over-year increase since February 2006, while the Federal Housing Finance Agency’s U.S.-wide Purchase-Only index appreciated 8.5 percent over the same period.

FHFA reported that 30-year fixed rates averaged 4.58 percent in October, 5 BPS better than in September.

Not much difference in the 30 year can be expected in Freddie’s next report based on Mortgage Daily’s analysis of Treasury market activity this week.

The yield on the 10-year Treasury note, which fixed mortgage rates track, averaged 2.73 percent during the period Freddie surveyed lenders this week, according to data from the Department of the Treasury. The 10-year yield closed at 2.74 percent Wednesday.

A majority of panelists surveyed by Bankrate.com for the week Nov. 27 to Dec. 5 agreed with Mortgage Daily’s forecast and expect no change in mortgage rates over the next week. A quarter predicted that rates will retreat by at least 3 BPS, and just 12 percent expected an increase.

The Mortgage Bankers Association’s latest forecast has 30-year rates averaging 4.4 percent in the fourth quarter, climbing to 4.7 percent the following quarter and rising further to 4.8 percent in the second quarter of next year.

The jumbo-conforming spread widened to 35 BPS in the U.S. Mortgage Market Index report from LoanSifter and Mortgage Daily for the week ended Nov. 22 from the previous week’s 23 BPS.

Freddie reported average 15-year fixed rates at 3.30 percent, just 3 BPS more than in the week ended Nov. 21.

Fifteen-year mortgages were more competitive this week, with borrowers receiving a 99-basis-point discount compared to 30-year borrowers. Last week’s spread was just 95 BPS.

A one-basis-point drop from last week left five-year, Treasury-indexed, hybrid, adjustable-rate mortgages averaging 2.94 percent, according to Freddie.

One-year Treasury-indexed ARMs averaged 2.60 percent, down from 2.61 percent in the prior report. Freddie said the one year averaged 2.56 percent in the week ended Nov. 29, 2012.

The yield on the one-year Treasury note, which is used to determine rate and payment adjustments on one-year ARMs, rose to 0.13 percent Wednesday from 0.12 percent last week, according to Treasury Department data.

Bankrate.com reported that the six-month London Interbank Offered Rate was 0.34 percent Wednesday, off from 0.35 percent seven days earlier.

ARM share fell to 6.7 percent in the most recent Mortgage Market Index report from the prior week’s 11.5 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