March 31st, 2016 11:14 AM by Jackie A. Graves, President
Federal Reserve Chair Janet Yellen indicated earlier this week
that the central
bank should move cautiously in raising rates. The news spurred
investors to purchase government bonds, sending yields lower.
the movement of the 10-year Treasury bond is one of the best indicators of
whether mortgage rates will rise or fall, home loan rates are likely
remarks Tuesday before the Economics Club of New York came too late, however,
to affect Freddie Mac’s mortgage rates survey. The government-supported
mortgage backer aggregates home loan rates weekly from 125 lenders nationwide
to come up with a national average mortgage rate.
Janet Yellen: Central bank should move ‘cautiously’ in raising rates]
because the market was waiting to hear what Yellen said, mortgage rates
were essentially flat this week, according to the latest data released Thursday
by Freddie Mac.
30-year fixed-rate average held steady at 3.71 percent with an average 0.5
point, the same as it was a week ago. (Points are fees paid to a lender equal
to 1 percent of the loan amount.) It was 3.70 percent a year ago. The 30-year
fixed rate has remained below 4 percent since late December.
15-year fixed-rate average crept up to 2.98 percent with an average 0.4 point.
It was 2.96 percent a week ago and 2.98 percent a year ago. The 15-year fixed
rate has stayed under 3 percent since early February.
five-year adjustable rate average also moved slightly higher, rising to 2.9
percent with an average 0.5 point. It was 2.89 percent a week ago and 2.92
percent a year ago.
don’t seem to be using new tool to shop for mortgages]
comments by Federal Reserve Chair Janet Yellen on Tuesday triggered a rally in
Treasury markets and drove the 10-year yield down 13 basis points from last
week’s high,” Sean Becketti, Freddie Mac chief economist, said in a statement.
comments came too late to affect this week’s mortgage rate survey, and the
30-year mortgage rate remained unchanged at 3.71 percent. However, if the Fed’s
cautious tone persists, mortgage rates may register the impact in subsequent
prequalified doesn’t always mean you’ll get that mortgage]
mortgage applications were down, according to the latest data from the Mortgage
market composite index — a measure of total loan application volume — fell
1 percent from the previous week. The refinance index dropped 3 percent, while
the purchase index rose 2 percent.
refinance share of mortgage activity accounted for 52.4 percent of all
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