Mortgage Daily Logo

ARM Share, Yield Sink

Mortgage News

ARM Share, Yield Sink

Average 30-year fixed rate 6.46%

September 6, 2007

By COCO SALAZAR

photo of Coco Salazar
The share of adjustable-rate mortgage applications sank — though a big drop in the yield of the 1-year Treasury-indexed ARM may change that.

At. 6.46% this week, the 30-year fixed-rate mortgage average edged up 1 basis point from a week ago and came in 1 BPS below the level a year ago, Freddie Mac said its latest Primary Mortgage Market Survey showed.

The spread between the conforming and jumbo 30-year fixed rate is around 110 BPS in certain markets, with jumbos priced at approximately 7.5%, Zacks.com announced today.

The 15-year fixed-rate mortgage averaged 6.15%, inching up 3 BPS from last week, Freddie said.

The benchmark for long-term mortgage rates, the 10-year Treasury note yield, closed today at 4.50%, slightly better than 4.52% a week ago.

“Over the past week, long-term mortgage rates were largely unchanged as the most recent economic news showed smaller increases than had been expected,” Freddie Chief Economist Frank Nothaft commented in an announcement.

Mortgage rates are destined to head lower through mid-October or so, according to half of the 100 mortgage “experts” surveyed by Bankrate.com this week. A little over a third forecast rates will remain relatively unchanged over that period and the rest predict rates will rise.

For all of next quarter, however, the 30-year is expected to continue at this quarter’s average of 6.6%, according to the Mortgage Bankers Association’s latest outlook

Yields on adjustable-rate mortgages stepped down from last week, with the 5-year hybrid Treasury-indexed ARM average slipping 3 BPS to 6.32% this week and the 1-year Treasury- indexed ARM sliding 10 BPS to 5.74%, Freddie said. The Federal Reserve reported the 1-year Treasury bill itself was at 4.28% Wednesday, about 11 BPS better than a week earlier.

The share of ARM applications fell to below 13 percent from 15 percent during the last week of August, MBA reported Wednesday. ARM share had been as high as 23% during August.

Overall, mortgage shops generated a little more traffic, with originators reportedly completing 1% more applications than a week earlier mainly due to a 2 percent upturn in refinance requests as purchase money demand was almost unchanged.

Accordingly, the share of refinance applications ticked up from the previous week to above 41 percent, MBA added.

 

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...

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