On a month-over-month basis, mortgage rates were slightly worse. But the deterioration deepened on a week-over-week basis. Further increases are likely.
Ellie Mae Inc. reported in its Origination Insight Report | August 2018 that 30-year note rates on home loans closed last month averaged 4.92 percent.
The average crept up from 4.91 percent the preceding month. A far more significant ascension was recorded versus a year prior, when the average was 4.27 percent.
Ellie reported that last month’s average was
4.94 percent on conventional mortgages. Loans insured by the Federal Housing Administration had rates of 4.95 percent, and the average was 4.74 percent on mortgages guaranteed by the Department of Veterans Affairs.
Thirty-year fixed rates averaged 4.65 percent in Freddie Mac’s Primary Mortgage Market Survey for the week ended Sept. 20, rising 5 basis points from last week and 82 BPS worse than the week ended Sept. 21, 2017.
In the week Sept. 19 to Sept. 25, three-quarters of panelists surveyed by Bankrate.com predicted rates will rise at least another 3 BPS over the next week. A decline was forecasted by 17 percent, and only 8 percent expected a decline.
Mortgage Daily’s analysis of Treasury market activity has fixed rates potentially escalating around 3 BPS in Freddie’s next survey.
Thirty-year fixed rates are expected to average 4.5 percent in the third quarter then rise to 4.6 percent the following four quarters in Fannie Mae’s Housing Forecast: September 2018.
In the U.S. Mortgage Market Index report from Mortgage Daily and OpenClose for the week ended Sept. 14, jumbo rates were 15 BPS higher than conforming rates. The spread increased from 9 BPS the prior week.
Freddie reported 15-year fixed rates at 4.11 percent, 5 BPS more than in the week ended Sept. 20, 2018. No change in the spread between 15- and 30-year rates left it at 54 BPS.
Average rates on five-year, Treasury-indexed, hybrid adjustable-rate mortgages slipped a basis point to 3.92 percent.
Fannie predicts hybrid ARMs will average 3.9 percent this quarter, 4.0 percent in the fourth quarter and 4.1 percent in each of the following two quarters.
The index for hybrid ARMs, the yield on the one-year Treasury note, climbed to 2.58 percent Thursday
from 2.55 percent the preceding Thursday, according to Treasury Department data.
The Wall Street Journal reported the six-month London Interbank Offered rate at 2.57175 as of Wednesday, rising from 2.56063 percent seven days earlier.
At
1.92 percent as of yesterday, the Secured Overnight Financing Rate was down 2 BPS from the previous Wednesday, the Federal Reserve Bank of New York reported.
Ellie’s data had ARM share at 6.6 percent in August, the same as a month previous. ARM share was wider, though, than 5.7 percent a year previous. ARM share was 6.9 percent on conventional transactions, 0.6 percent on FHA closings and 0.3 percent on VA mortgages.
ARM share was 22.5 percent in the latest Mortgage Market Index report, significantly more broad than 16.5 percent the prior week.
