Mortgage Daily Logo

Mortgage Rates Creep Up, Could Ascend Further

Rates

Mortgage rates ascended during the past week, are still rising and are likely to be worse in next week’s report. But bad news out of Europe could change that outcome.

Home-loan interest rates were little changed over that past week, with the average 30-year fixed rate creeping up 2 basis points from a week earlier to 3.56 percent.

That was based on the Primary Mortgage Market Survey for the week ended June 23 from Freddie Mac, which indicated the 30 year was 4.02 percent a year earlier.

MBSQuoteline Director Joe Farr wrote in a statement to Mortgage Daily that prices on mortgage-backed securities have deteriorated slightly since Freddie surveyed lenders, indicating that mortgage rates have risen a little more.

In Freddie’s next survey, fixed rates might be around 5 BPS worse than this week based on a Mortgage Daily analysis of Treasury market activity.

A majority of panelists surveyed by Bankrate.com for the week June 23 to June 29 predicted that mortgage rates won’t be more than 2 BPS different next week. Another 36 percent projected an increase, and 9 percent expected a decline.

Bankrate.com Chief Financial Analyst said the direction of rates will depend on Great Britain’s vote on whether or not to leave the European Union.

“If the Brexit vote goes as expected, markets will breathe a sigh of relief and rates will tick higher,” McBride wrote in a statement to Mortgage Daily. “If, on the other hand, markets get surprised by a vote to exit the European Union, markets will freak out and mortgage rates will plunge.”

On a longer-term basis, Fannie Mae predicted in its
Housing Forecast: June 2016 that 30-year fixed rates will average 3.6 percent this quarter and in the third quarter then spend the next two quarters at 3.7 percent.

The Mortgage Bankers Association predicted in its MBA Mortgage Finance Forecast for June that the 30 year will climb from 3.6 percent in the second quarter to 3.9 percent three months later and 4.0 percent in the final quarter of 2016.

In the U.S. Mortgage Market Index report from OpenClose and Mortgage Daily for the week ended June 17, interest rates on jumbo mortgages were 3 BPS more than conforming rates, the same spread as a week prior.

Freddie’s survey indicated that 15-year fixed rates averaged 2.83 percent, also up 2 BPS from the previous survey. Interest rates on 15-year mortgages were 73 BPS less than 30-year rates. The spread
was no different than in the week ended June 16.

Five-year, Treasury-indexed, hybrid, adjustable-rate mortgages averaged 2.74 percent in Freddie’s latest report, unchanged from a week prior.

Fannie expects hybrid ARMs to average 2.8 percent in the second quarter then rise 10 BPS each of the following three quarters.

One-year ARMs were reported by HSH.com at 2.61 percent as of Thursday, sinking from 2.83 percent seven days earlier. The one-year ARM averaged 2.50 percent in the week ended June 25, 2015, Freddie previously reported.

The one-year Treasury yield, which determines rate changes on one-year ARMs, closed at 0.58 percent as of Thursday, the Treasury Department reported. The one-year yield jumped from 0.53 percent a week prior.

Another ARM index, the six-month London Interbank Offered Rate — or LIBOR — was unchanged from a week earlier at 0.93 percent as of Wednesday, according to Bankrate.com.

ARMs accounted for 7.7 percent of all rate locks tracked in the latest Mortgage Market Index report. ARM share was modestly thinner than 7.9 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 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