Mortgage Interest Rates Ease This Week

Borrowers found some relief for the second consecutive week with lower mortgage rates.

“After dropping earlier this week on trade-related anxiety in financial markets, the benchmark 10-year Treasury stabilized on Wednesday, but at a level slightly lower than from the start of last week,” explains Len Kiefer, Freddie Mac’s deputy chief economist.

Freddie Mac reported the following national averages for the week ending April 5:

  • 30-year fixed-rate mortgages: averaged 4.40 percent, with an average 0.5 point, dropping from last week’s 4.44 percent average. Last year at this time, 30-year rates averaged 4.10 percent.
  • 15-year fixed-rate mortgages: averaged 3.87 percent, with an average 0.4 point, dropping from last week’s 3.90 percent average. A year ago, 15-year rates averaged 3.36 percent.

Source: Freddie Mac

Mortgage Rates Hover Around 2015 High

Fixed-rate mortgages remained near the highest level of the year this week and future rises are likely as bond yields moved higher late Wednesday.

Freddie Mac reported the following  for the week ending June 4:

  • 30-year fixed-rate mortgages: averaged 3.87 percent, with an average 0.6 point, holding the same average as the week prior. Last year at this time, 30-year rates averaged 4.14 percent.
  • 15-year fixed-rate mortgages: averaged 3.08 percent, with an average 0.5 point, dropping from last week’s 3.11 percent average. A year ago, 15-year rates averaged 3.23 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.96 percent, with an average 0.5 point, rising from last week’s 2.90 percent average.

Source: Freddie Mac

Fed: Home Loan Interest Rate Hikes Likely in June

The Federal Reserve is signaling that it will likely take action on increasing interest rates in two months, despite recent data that shows a weakened economy. This would be the first rate increase since 2006.

Two central bank officials said Wednesday that disappointing job growth, manufacturing activity, and retail sales over the winter had pushed rate hike expectations to later in the year. For more than six years, the Fed has held rates near zero. But June is being viewed as the likely month for the Fed to start its rising of rates.

“I could imagine circumstances where a June rate hike could still be in play,” says William Dudley, New York Fed president, and a voting member on the Fed’s policy committee. “If the economy’s strong, the unemployment rate is dropping, wages are rising, and the outlook is good, you could conceivably get to that point. The bar is probably a little bit higher” for a June hike given recent data.    What are your comments?

Source: “Fed Officials Say June Rate Hike Still in Play, Hinges on Data,” Reuters (April 9, 2015) and “What an Interest Rate Increase Means for Real People,” CNNMoney (March 19, 2015)

Mortgage Rates Up, But Remain Below 4%

After four weeks of decreases, the 30-year fixed-rate mortgage inched up slightly this week, but stayed near yearly lows under  4 percent, Freddie Mac reported in its weekly mortgage market survey.

Freddie Mac reported the following national averages for the week ending Dec. 11:

  • 30-year fixed-rate mortgages averaged 3.93 percent, with an average 0.5 point, rising from last week’s 3.89 percent average. Last year at this time, 30-year rates averaged 4.42 percent.
  • 15-year fixed-rate mortgages averaged 3.20 percent, with an average 0.5 point, rising from last week’s 3.10 percent average. A year ago, 15-year rates averaged 3.43 percent.
  • 5-year hybrid adjustable-rate mortgages averaged 2.98 percent, with an average 0.5 point, rising from last week’s 2.94 percent average. Last year at this time, 5-year ARMs averaged 2.94 percent.

Source: Freddie Mac