Before the impact of the presidential election, mortgages rates were already rising. In the next report, fixed interest rates are likely to leap.
In the Primary Mortgage Market Survey from Freddie Mac for the week ended Nov. 10, thirty-year fixed rates averaged 3.57 percent.
The last time that the secondary lender had 30-year fixed rates this high was in the week ended June 9, when the average was 3.60 percent.
Freddie Mac Chief Economist Sean Becketti explained that the latest rates reflect pre-election market conditions.
Joe Farr, director at MBSQuoteline, said in a written statement that mortgage rates have risen around an eighth of a percent since Freddie’s survey was conducted.
Mortgage Daily’s analysis of Treasury market activity suggests that fixed mortgage rates are likely to be around 22 basis points worse in Freddie’s next survey.
Half of Bankrate.com panelists surveyed for the week Nov. 10 to Nov. 16 agreed with Mortgage Daily’s forecast that rates will rise. No change was predicted by 40 percent, and a 10th expect rates to decline at least 3 BPS.
The jumbo-conforming spread was 7 BPS in the the U.S. Mortgage Market Index report from OpenClose and Mortgage Daily in the week ended Nov. 4, the same as the previous week.
At 2.88 percent in Freddie’s survey, 15-year fixed rates were 4 BPS higher than in the week ended Nov. 3.
Freddie’s data indicate that the spread between 15- and 30-year rates thinned to 69 BPS from 70 BPS a week prior.
Freddie reported that five-year, Treasury-indexed,
hybrid, adjustable-rate mortgages averaged 2.88 percent, up a single basis point from the prior report.
As of Thursday,
the yield on the one-year Treasury note was 0.72 percent, jumping from 0.64 percent seven days earlier, according to Treasury Department data.
The six-month London Interbank Offered Rate was reported by Bankrate.com at 1.25 percent as of Wednesday, off from 1.26 percent the prior week.
ARM share in the most-recent Mortgage Market Index report was 6.9 percent, thinning from 7.2 percent the prior week.