Mortgage Daily Logo

Apps, Rates Edge Down

Mortgage News

Apps, Rates Edge Down

Average 30-year fixed rate 6.44%

August 31, 2006



photo of Coco Salazar
Five weeks of falling rates failed to lift loan applications.

Sliding four basis points from last week to the lowest level since early April, the 30-year fixed-rate mortgage average came in at 6.44%, according to the announced results of Freddie Mac’s latest Primary Mortgage Market Survey. At this time a year ago, the average was 5.71%.

“Mortgage rates continued to drift lower this week in large part because of the cooling in the housing market and in consumer confidence, thus giving financial markets reason to believe that economic growth will moderate and inflation will remain in check,” said Frank Nothaft, Freddie chief economist, in the announcement. “As a matter of fact, the 30-year [fixed rate mortgage] is nearly 40 basis points lower than its peak of 6.8 percent in July of this year.”

For the next quarter, the most recent forecasts of Freddie, Fannie Mae and the Mortgage Bankers Association have the 30-year average rising to 6.6% on the low end and 6.8% on the high end.

Over the next 35 to 45 days, only 14 of the 100 mortgage “experts” surveyed by this week saw a downturn in rates and the rest were evenly divided on whether they’d go up or remain relatively unchanged.

The average 15-year fell 4 BPS from last week to 6.14%, Freddie reported.

The yield on the 10-year Treasury, a benchmark for fixed mortgage rates, closed today at 4.73 percent, 7 BPS better that last week.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage average was reported at 6.11%, or 3 BPS lower than a week ago.

The average 1-year Treasury-indexed ARM decreased 3 BPS to 5.59%, the survey said. The 1-year T-bill, at 5.03% Wednesday, fell 4 BPS from a week earlier, Federal Reserve data showed.

Reversing three consecutive weekly upturns, mortgage application volume nudged down 1% for the week ending Aug. 25, as the 2% decrease in purchase money demand, which is at the lowest level since November 2003, overshadowed a slight increase in refinance requests, MBA reported.

The refinance and ARM share of mortgage activity respectively inched up from the prior week to nearly 42% and 27%, MBA said.


Coco Salazar is an assistant editor and staff writer for 



Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

The Mortgage Graveyard 2018 Archives

The Mortgage Graveyard 2018 Archives Failed, Struggling and Acquired Mortgage-Related Companies Non-Bank Closures 3 Bank Failures (FDIC) 0 Credit Union Failures 0 Total Mortgage-Related Failures 3  

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

MBS Statistics

MBS Statistics Non-Agency Issuance 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 Private Label RMBS Issuance (S&P) $80 billion to $100 billion (est) $70 billion $34...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Sample E-Mail

Sample E-Mail   Covering the Real Estate Finance Since 1999  Mortgage Industry News free news content | view headlines online  Advertorial Text Ad This ad includes a linked bold headline of up to 50 characters and up to 100 words of text. The ad can be...

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