Mortgage Daily Logo

More Improvement in Mortgage Market

Rates

Mortgage rates fell to fresh record lows, and mortgage activity continued higher this week.

There was no stopping the 30-year fixed-rate mortgage. Freddie Mac reported the average 30-year at 4.36 percent — another record low based on data back to 1971. The 30-year was 4.42 percent a week earlier and 5.14 a year earlier.

The conventional 30-year was mostly unchanged from last week, while the jumbo 30-year stayed at 5.200 percent in the Mortech-Mortgage Daily Mortgage Market Index report for the week ended Aug. 25. The resulting jumbo-conventional spread remained at 88 basis points.

Fixed rates are likely to come in around the same level next week, based on the 10-year Treasury yield — which closed at 2.50 percent today and 2.58 percent a week earlier based on data from the U.S. Department of the Treasury. The 8-basis-point weekly decline wasn’t far from the 6-basis-point decline with the 30-year mortgage.

Half of the panelists surveyed by Bankrate.com for the week Aug. 26 to Sept. 2 agreed that rates will linger at current levels over then next seven days or so. But 30 percent see further declines, while 20 percent projected rates will rise at least 3 BPS.

Freddie said the average 15-year fell 4 BPS from last week to 3.86 percent — the lowest level recorded since Freddie began tracking the 15-year in 1991.

Maintaining a record-low 3.56 percent, Freddie reported that the five-year Treasury-indexed hybrid adjustable-rate mortgage didn’t change from last week.

But the one-year Treasury-indexed ARM did change — trimming 1 basis point off to 3.52 percent, Freddie’s report indicated. The one-year averaged 4.69 percent in the same week last year. The underlying index, the yield on the one-year Treasury bill, was unchanged from last Thursday at 0.25 percent, the Treasury reported.

The yield on the six-month London Interbank Offered Rate, the index on many subprime ARMs, closed Wednesday at 0.52 percent, Bankrate.com reported. LIBOR was 0.58 percent the previous Wednesday.

ARM share was 5.8 percent in the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ended Aug. 20, up marginally from 5.7 in the previous survey.

Mortgage activity edged up slightly from last week, based on the Mortgage Market Index — which increased to 355 Wednesday from 350. The index, which reflects new traffic at mortgage brokerage shops, was up for the fourth consecutive week.

Last week, mortgage bankers saw new applications increase 5 percent on a seasonally adjusted basis, MBA reported. Refinances rose 6 percent and purchases were up less than a percent.

The average U.S. loan amount in the Mortgage Market Index report was $214,838, lower than $215,694 last week. Washington, D.C.’s $290,953 average enabled the district to maintain its grip on the highest average loan amount. South Dakota’s $151,741 was the lowest state average.

Refinance share nudged down slightly from seven days earlier, to 64 percent in the Mortech-Mortgage Daily report. The rate-term share was 49 percent, and the cashout share was 15 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 paperwork has 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 furniture need to...

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...

Newsletter

Don’t worry, we don’t spam