Long-term rates on new single-family loans moved higher over the past week. But no changes are likely in the report seven days from now.
For the week ended May 11, thirty-year fixed rates averaged 4.05 percent in the Primary Mortgage Market Survey from Freddie Mac.
The 30 year ascended 3 basis points compared to the
preceding week. A 48-basis-point increase was recorded versus a year previous.
Joe Farr, the director of sales and marketing at MBSQuoteline, said in a written statement to Mortgage Daily that prices on mortgage-backed securities have deteriorated since Freddie conducted its survey. As result, mortgage rates are now higher than were reported by Freddie.
But fixed rates aren’t likely to be much different in Freddie’s next survey based on an analysis of Treasury market activity by Mortgage Daily.
While 46 percent of panelists surveyed by Bankrate.com for the week May 10 to May 16 agreed with Mortgage Daily, another 46 percent predicted an increase of at least 3 BPS over the next week. Just 9 percent expected a decline.
The Mortgage Bankers Association projected in its
MBA Mortgage Finance Forecast for May that the 30 year will average 4.2 percent in the second quarter then rise 20 BPS each three months through the end of the year.
Interest rates on jumbo mortgages were 3 BPS higher than conforming rates in the U.S. Mortgage Market Index report from Mortgage Daily and OpenClose for the week ended May 5. The jumbo-conforming spread swung from a negative 8 BPS the prior week.
Freddie’s survey had 15-year fixed rates averaging 3.29 percent, up 2 BPS from the week ended May 4. Fifteen-year rates were 76 BPS less than 30-year rates, with the spread
widening from 75 BPS a week earlier.
Freddie reported that five-year, Treasury-indexed, hybrid, adjustable-rate mortgages averaged 3.14 percent, a basis point more than in the last report.
The yield on the one-year Treasury note, which determines rate changes on hybrid ARMs, closed at 1.13 percent Thursday, up 2 BPS from seven days earlier, according to Treasury Department data.
The six-month London Interbank Offered Rate was reported by Bankrate.com at 1.45 percent as of Wednesday, increasing from 1.43 percent the previous Wednesday.
ARM share in the latest Mortgage Market Index report was 10.3 percent, widening substantially from 8.3 percent one week prior.
