Mortgage Daily Logo

Record Rates Fail to Lift Activity


Fixed rates again reached a new low, though that wasn’t enough to prompt more borrowers to take action.

It was a new record for the 30-year fixed-rate this week according to Freddie Mac’s latest survey of 125 mortgage lenders. The 30-year declined 1 basis point from last week to 4.56 percent. A year ago, the 30-year average was 5.20 percent. The 30-year was lowest in the West, where it averaged 4.51 percent.

Secondary rival Fannie Mae projected in its July forecast that the 30-year will average 4.6 percent in the third and fourth quarters.

The conventional 30-year averaged 4.485 percent in the Mortgage Market Index for the week ended July 21, slipping from 4.555 percent a week earlier. The jumbo 30-year fell to 5.47 percent from 5.55 percent — trimming the jumbo-conventional spread to 99 BPS from last week’s 100 BPS.

The yield on the 10-year Treasury bond fell to 2.96 percent Thursday from 3.00 percent a week earlier, based on data reported by the U.S. Department of the Treasury. The movement suggests the 30-year could ease in next week’s reports.

More than two-thirds of panelists surveyed by for the week July 22 to July predicted rates will stay within 2 BPS of their current levels during the next week. But 22 percent expected an increase, while 11 percent forecasted a decline.

Freddie Mac Chief Economist Frank Nothaft explained in this week’s report that mortgage rates moved lower in tandem with recent signs of weakening confidence in the strength of the economy.

Freddie said the average 15-year fixed-rate mortgage also fell to a new record: 4.03 percent. Seven days earlier, the 15-year was 4.06 percent.

Down 6 BPS from last week, the five-year Treasury-indexed adjustable-rate mortgage averaged 3.79 percent in Freddie’s survey.

The one-year Treasury-indexed ARM fell to 3.70 percent from 3.74 percent a week earlier and 4.77 percent 52 weeks earlier, according to Freddie. Fannie sees the one-year averaging 3.8 percent in the current quarter and in the fourth quarter.

The Treasury reported the yield on the one-year Treasury bill closed yesterday at 0.27 percent, the same as the prior Thursday. reported the six-month London Interbank Offered Rate fell 2 BPS from last week to 0.71 percent as of Wednesday.

Although the one-year ARM average declined 1 basis point last week and the 30-year fixed-rate was unchanged, ARM share moved lower in the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ended July 16. MBA said ARM share was 5.2 percent compared to 5.5 percent the prior week.

ARM share will average 5 percent in the third quarter then rise to 6 percent in the final quarter of this year, Fannie forecasted.

The drop in rates this week failed to push mortgage activity higher, with the Mortgage Market Index easing to 333 from 334 last week. The report indicated that the average U.S. loan amount edged up to $216,013 from $215,606. The highest state average was Hawaii’s $285,418, while the lowest was South Dakota’s $150,931.

This week’s refinance share was 61 percent, about the same as last week, according to the report. The latest level reflected a 46 percent rate-term share and a 14 percent cashout share.

Fannie predicted the refinance share will be 57 percent this quarter and 47 percent in the fourth quarter.

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...


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