Fixed Rates Up, 1-Year Down

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MORTGAGE EXPERT
4 · 07 · 11

The one-year adjustable-rate mortgage, unlike fixed and hybrid mortgage rates, was lower. Interest rates might move higher.

Inching up a single basis point from a week earlier, the average 30-year fixed-rate mortgage was 4.87 percent in Freddie Mac’s Primary Mortgage Market Survey for the Week ended Thursday. The 30-year was 5.21 percent during the same week last year.

An encouraging employment report held rates in check, Freddie’s chief economist, Frank Nothaft, said in the survey.

But it’s likely rates will be higher in Freddie’s next survey. The yield on the 10-year Treasury was trading around 3.55 percent today, higher than 3.47 percent a week ago, according to data from the Department of the Treasury and WSJ.com.

Rising rates were also forecasted by a majority of Bankrate.com panelists for the week April 7 to April 13. Another 38 percent predicted no change, and 6 percent expected a decrease of at least 3 BPS during the next week.

Jumbo mortgages were more expensive in the U.S. Mortgage Market Index report for the week ended April 1 from Mortech Inc. and Mortgage Daily. The spread between the jumbo 30-year and the conforming 30-year widened to 64 BPS from 61 BPS a week prior.

The average 15-year fixed-rate mortgage was also up a basis point from last week to 4.10 percent, Freddie reported. The spread between the 15-year and the 30-year was 77 BPS this week, no different than last week.

Freddie said the five-year Treasury-indexed hybrid ARM averaged 2 BPS more than in its previous survey at 3.72 percent.

The one-year Treasury-indexed ARM defied its fixed-rate and hybrid cousins — falling 4 BPS from Freddie’s previous report to 3.22 percent. A year earlier, the one-year averaged 4.14 percent.

The one-year ARM adjusts based on movement in the yield of the one-year Treasury, which edged down to 0.29 percent Wednesday from 0.30 percent a week earlier, the Treasury Department reported.

A competing ARM index, the six-month LIBOR, was unchanged from a week prior at 0.46 percent Wednesday, according to Bankrate.com.

ARM share edged down to 9.48 percent in the Mortgage Market Index report from 9.53 percent seven days earlier.

Mortgage Expert

Mortgage Daily Staff

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