The SCOOP! Blog by ChangeMyRate.com®

Mortgage Rates Drop To 31-Month Low As Loan Applications Tick Up, Home-Price Growth Slows

June 27th, 2019 10:11 AM by Jackie A. Graves, President

The benchmark 30-year fixed mortgage rate fell again this week to 3.94 percent from 3.99 percent a week ago, according to Bankrate’s latest survey of the nation’s largest mortgage lenders. The last time mortgage rates were this low was November 2016.

A year ago, it was 4.71 percent. Four weeks ago, the rate was 4.20 percent. The 30-year, fixed-rate average for this week is 1.16 percentage points below the 52-week high of 5.10 percent, and matches the 52-week low of 3.94 percent.

The 30-year fixed mortgages in this week’s survey had an average total of 0.32 discount and origination points.

Over the past 52 weeks, the 30-year fixed has averaged 4.61 percent. This week’s rate is 0.67 percentage points lower than the 52-week average.

Mortgage interest rates

The benchmark 30-year fixed mortgage rate fell to 3.94 percent this week, down from 3.99 percent a week ago. It's the lowest rates have been since November 2016.

The benchmark 30-year fixed-rate mortgage fell this week to 3.94 percent from 3.99 percent, according to Bankrate’s weekly survey of large lenders. A year ago, it was 4.71 percent. Four weeks ago, the rate was 4.20 percent. The 30-year fixed-rate average for this week is 1.16 percentage points below the 52-week high of 5.10 percent, and matches the 52-week low of 3.94 percent.

The 30-year fixed mortgages in this week’s survey had an average total of 0.32 discount and origination points.

Over the past 52 weeks, the 30-year fixed has averaged 4.61 percent. This week’s rate is 0.67 percentage points lower than the 52-week average.

  • The 15-year fixed-rate mortgage fell to 3.28 percent from 3.34 percent.
  • The 5/1 adjustable-rate mortgage rose to 3.76 percent from 3.68 percent.
  • The 30-year fixed-rate jumbo mortgage fell to 4.00 percent from 4.07 percent.

At the current 30-year fixed rate, you’ll pay $473.96 each month for every $100,000 you borrow, down from $476.84 last week.

At the current 15-year fixed rate, you’ll pay $704.13 each month for every $100,000 you borrow, down from $707.05 last week.

At the current 5/1 ARM rate, you’ll pay $463.68 each month for every $100,000 you borrow, up from $459.15 last week.

Results of Bankrate.com’s weekly national survey of large lenders conducted June 26, 2019 and the effect on monthly payments for a $165,000 loan:

Weekly national mortgage survey

Breakdown

30-year fixed

15-year fixed

5-year ARM

This week’s rate:

3.94%

3.28%

3.76%

Change from last week:

-0.05

-0.06

+0.08

Monthly payment:

$782.04

$1,161.81

$765.08

Change from last week:

-$4.74

-$4.82

+$7.48

Home-price growth cools further in April

It’s a good news/bad news scenario for homebuyers and sellers. U.S. home-price growth slipped to a 3.5 percent annual gain in April, down from 3.7 percent in March, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.

For buyers, slower home-price growth could lead to enhanced affordability in their local housing markets. For sellers, however, slower price growth means less home equity and, potentially, netting a lower sales price when it’s time to sell their homes.

Not all markets are seeing dwindling price growth though. Las Vegas, Phoenix and Tampa saw the highest annual gains in April. Las Vegas came out on top, logging a 7.1 percent annual price jump, with Phoenix seeing a 6 percent increase, and Tampa a 5.6 percent increase.

“Home-price gains continued in a trend of broad-based moderation,” said Philip Murphy, managing director and global head of index governance at S&P Dow Jones Indices, in a statement. “Year-over-year price gains remain positive in most cities, though at diminishing rates of change. Seattle is a notable exception, where the (year-over-year) change has decreased from 13.1 percent in April 2018 to 0.0 percent in April 2019.”

Mortgage applications edge back up

As mortgage rates keep falling, home shoppers are pulling back on applying for a mortgage while homeowners are still keen to refinance their mortgages.

Mortgage applications rose 1.3 percent from the previous week, according to data from the Mortgage Bankers Association’s applications survey for the week ending June 21.

Purchase applications dipped 1 percent while refinance applications, which have gotten a boost from falling rates in recent weeks, jumped 3 percent from the week prior, the MBA reported. On an unadjusted basis, purchase applications rose 9 percent over the same week a year ago.

“Markets last week reacted to a more dovish (Federal Open Market Committee) statement and forecast, with Treasury yields falling after the meeting,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting, in a statement. “Despite these lower rates, purchase applications decreased 2 percent, but were still considerably higher (9 percent) than a year ago.”

Despite a persistent inventory crunch for existing homes for sale, as well as a lag in new-home building, Kan said the purchase market is stronger at this point in the year than it was at the same time last year.

The “Bankrate.com National Average,” or “national survey of large lenders,” is conducted weekly. The results of this survey are quoted in our weekly articles and national media outlets. To conduct the National Average survey, Bankrate obtains rate information from the 10 largest banks and thrifts in 10 large U.S. markets. In the Bankrate.com national survey, our Market Analysis team gathers rates and/or yields on banking deposits, loans and mortgages. We’ve conducted this survey in the same manner for more than 30 years, and because it’s consistently done the way it is, it gives an accurate national apples-to-apples comparison.

Source: To view the original article click here


Archives:

My Favorite Blogs:

Sites That Link to This Blog: