Mortgage Daily Logo

Mortgage Rates Drop, Further Decline Possible

Rates

Interest rates on home loans moved lower this past week and are likely to drift down further if tomorrow’s employment report isn’t too robust.

Thirty-year fixed rates averaged 3.97 percent in the Primary Mortgage Market Survey published by Freddie Mac for the week ended Jan. 7.

The 30 year declined four basis points compared to the last survey from Freddie. But it has ascended 24 BPS versus the same report last year.

Freddie Mac Chief Economist Sean Becketti attributed the week-over-week decline in mortgage rates to a
flight to safety amid a global equity selloff in response to concerns about overseas economic developments.

Joe Farr, director at MBSQuoteline, noted that mortgage rates have recently been improving.

“MBS prices were at the worst levels of the December when last week’s survey was conducted,” Farr said in a written statement. “Due [to] increased geopolitical tensions and weakness in global economic activity, MBS prices have been on steep path higher since then.”

Based on Mortgage Daily’s analysis of Treasury market activity, fixed rates could be around six BPS lower in Freddie’s next survey — though rates could turn higher if tomorrow’s employment report is strong.

But less than a quarter of panelists surveyed by Bankrate.com for the week Jan. 7 to Jan. 13 predicted that mortgage rates will fall over the next week. The remaining 76 percent were evenly split about whether rates will rise at least three BPS or stay where they are.

Freddie reported that 15-year fixed rates averaged 3.26 percent, two BPS higher than in the week ended Dec. 31, 2015.

At 3.09 percent, Treasury-indexed, hybrid, adjustable-rate mortgages averaged a basis point more than as of seven days earlier, according to Freddie’s report.

The one-year Treasury yield, which is used as an index on one-year adjustable-rate mortgages, closed Thursday at 0.66 percent, a basis point more than one week prior, according to Treasury Department data.

An index utilized on other adjustable-rate mortgages, the six-month London Interbank Offered Rate, was 0.85 percent as of Wednesday, Bankrate.com reported. LIBOR climbed from 0.83 percent seven days earlier.

Rate locks for ARMs accounted for 21.3 percent of all activity in the U.S. Mortgage Market Index report from OpenClose and Mortgage Daily for the week ended Jan. 1. ARM share soared from 11.9 percent the prior week.

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