Mortgage Daily Logo

Rates Could Improve

Rates

Despite a surge in mortgage rates this week, one barometer points to a decline by next week.

Jumping nearly a quarter percent, the average 30-year fixed-rate mortgage was 5.05 percent in Freddie Mac’s Primary Mortgage Market Survey for the week ended Thursday. The 30-year was 4.81 percent a week earlier and 4.97 percent a year earlier.

The weekly increase, according to Freddie’s chief economist, Frank Nothaft, was the result of “positive economic data reports.”

The 10-year Treasury yield climbed to 3.70 percent today from 3.58 percent last Thursday based on Treasury Department data. The 12-basis-point rise was less than the 24-basis-point increase for the 30-year mortgage — pointing to lower mortgage rates in the next set of reports.

But the majority of panelists surveyed by Bankrate.com for the week Feb. 10 to Feb. 16 predicted that mortgage rates will increase at least 3 BPS over the next week. The remaining 40 percent were evenly split over whether rates would fall or see no change.

The spread between the conforming 30-year fixed-rate mortgage and the jumbo 30-year loan improved to 66 BPS this week from last week’s 70 BPS, based on the Mortech-Mortgage Daily Mortgage Market Index report for the week ended Wednesday. The jumbo-conforming spread was also better than 88 BPS a year ago.

Climbing nearly as much as the 30-year, Freddie said the average 15-year fixed-rate mortgage jumped to 4.29 percent from 4.08 percent seven days prior.

A 23-basis-point jump was recorded with the five-year Treasury-indexed hybrid adjustable-rate mortgage by Freddie, which said the five-year averaged 3.92 percent.

A more mild 9-basis-point increase put the one-year Treasury-indexed ARM at 3.35 percent, Freddie said. The one-year was 4.33 during the same week last year.

The yield on the one-year Treasury, used as the index for the one-year ARM, closed today at 0.30 percent, higher than 0.29 percent seven days earlier. No change was reported by Bankrate.com for the six-month LIBOR.

ARM share rose to 5.9 percent in the Mortgage Bankers Association’s survey for the week ended Feb. 4 from 5.5 percent seven days prior.

Despite a 1 percent weekly decline in new refinance activity, the Mortgage Market Index climbed 10 percent from last week. A 23 percent surge in new purchase activity fueled the rise.

Related Posts

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Up 92 BPS From Year Ago Weekly interest rates might continue holding Oct. 25, 2018 By SAM GARCIA Mortgage Daily Over the past year, weekly fixed interest rates on single-family loans have soared 92 basis points. But little change was reported from last...

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...

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