September 8th, 2017 7:24 AM by Jackie A. Graves, President
Fixed mortgage rates sank to
new lows for the year this week.
According to the latest data released Thursday by Freddie Mac,
the 30-year fixed-rate average tumbled to 3.78 percent with an average 0.5
point. (Points are fees paid to a lender equal to 1 percent of the loan
amount.) It was 3.82 percent a week ago and 3.44 percent a year ago. The
30-year fixed rate hasn't been this low since early November.
The 15-year fixed-rate average slid to 3.08 percent with an
average 0.5 point. It was 3.12 percent a week ago and 2.76 percent a year ago.
The five-year adjustable rate average edged up to 3.15 percent with an average
0.4 point. It was 3.14 percent a week ago and 2.81 percent a year ago.
another potentially catastrophic hurricane bearing down on the United States
and global tensions running high with North Korea, investors are apprehensive
about the economic impacts of these events. These concerns have whetted their
appetite for long-term bonds, driving yields to their lowest levels since the
presidential election. The yield on the 10-year Treasury plunged to 2.07 percent
Tuesday, falling from a yearly high of 2.62 percent in March.
mortgage rates tend to follow the same path as long-term bonds, home loan rates
rates have been in a five-week skid, but some observers expect the downturn is about
to halt. About a third of the experts surveyed by Bankrate.com, which puts out
a weekly mortgage rate trend index, said home loan rates would remain
relatively stable in the coming week. Elizabeth Rose, branch manager of
Movement Mortgage in Dallas, is one who says rates will hold steady.
thrive on bad news and we have no shortage of not-so-good news and data:
back-to-back hurricanes, Korea, inflation, lack of wage growth," Rose
said. "While bonds and rates are at the best levels and could still
possibly improve from here with more negative news, it is more likely they will
stay the course and remain unchanged."
spurred by falling rates, mortgage applications picked up last week, according
to the latest data from the Mortgage Bankers Association. The market composite
index - a measure of total loan application volume - increased 3.3 percent. The
refinance index rose 5 percent, while the purchase index inched up 1 percent.
refinance share of mortgage activity accounted for 50.9 percent of all
geopolitical tensions last week brought mortgage rates to their lowest level
since the 2016 election," said Joel Kan, an MBA economist. "Refinance
volume jumped as a result, and for the first time since January, the majority
of application volume was for refinances, with the refinance share almost 51
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