Mortgage Daily Logo

Record Government Purchase Applications

Rates

The one-year adjustable-rate mortgage improved as a growing share of loan applicants are opting for ARMs. An increase in new mortgage applications was fueled by a surge in refinances and record applications for government purchase financing.

There was no weekly change in the average 30-year fixed-rated mortgage, which Freddie Mac reported today at 5.04%. A year earlier, the 30-year stood at 6.09%.

The average 15-year fixed-rate mortgage eased 0.01% from the previous week to 4.46%, according to Freddie’s survey of 125 thrifts, credit unions, commercial banks and mortgage lenders.

In early trading, the 10-year Treasury bond yielded 3.381%, better than 3.443% a week ago and an indication that mortgage rates might ease.

However, more than two-thirds — 69% — of the 10 panelists surveyed by Bankrate.com for the week Sept. 24 to Sept. 30 predicted rates will not move more than 2 basis points during the next 35 to 45 days, while 16% forecasted a decrease and 15% projected a decline.

Freddie said the five-year Treasury-indexed hybrid ARM was unchanged from the prior week at 4.51%.

But the one-year Treasury-indexed ARM saw some action — falling 6 BPS to 4.52%, according to Freddie’s survey. The one-year was down 51 BPS from a year ago. The underlying index, the yield on the one-year Treasury bill, was 0.41% yesterday, higher than 0.38% seven days prior, according to Federal Reserve data.

Another ARM index, the six-month London Interbank Offered Rate — or LIBOR — was 0.67% yesterday, edging down from 0.68% last week, according to Bankrate.com.

Freddie’s chief economist, Frank Nothaft, noted that yesterday’s statement indicating the Federal Reserve it would keep its benchmark interest rate exceptionally low for an extended period will likely benefit ARM borrowers.

ARM share jumped from 6.0% to 6.7% in the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ended Sept. 18.

A decline in mortgage rates last week as well as a 17% surge in refinances helped push mortgage applications up 13% on a seasonally adjusted basis, MBA reported. Purchase applications were 6% better, and the Government Purchase Index reached the highest level on record.

MBA said the share of applications that were for refinances was 64%, up from 61% the prior week.

Related Posts

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Up 92 BPS From Year Ago

Mortgage Rates Up 92 BPS From Year Ago Weekly interest rates might continue holding Oct. 25, 2018 By SAM GARCIA Mortgage Daily Over the past year, weekly fixed interest rates on single-family loans have soared 92 basis points. But little change was reported from last...

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...

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