Freddie Mac: Mortgage rate decrease expected to continue

Freddie Mac: Mortgage rate decrease expected to continue

Freddie Mac: Mortgage rate decrease expected to continue

USA mortgage rates fell in step with bond yields in the wake of weaker-than-expected domestic economic data and as investors scaled back expectations about interest rate increases by the Federal Reserve in 2017, according to Freddie Mac (FMCC.PK) on Thursday.

The 15-year FRM also decreased slightly to 3.27%, down from 3.29% last week, but still up from 2.81% last year.

Adjustable rate mortgage loans accounted for 8.1% of all applications, down 0.1 percentage points compared with the prior week. The average rate on 10-year fixed refis, meanwhile, climbed. It was 3.29 percent a week ago and 2.81 percent a year ago.

Mortgage buyer Freddie Mac said Thursday the average rate on 30-year fixed-rate home loans slipped to 4.02 percent from 4.05 percent last week. The best 20 year FRM interest rates stand at 3.750% today and an April of 3.848%.

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Quote Attributed to Sean Becketti, chief economist, Freddie Mac.

Political uncertainty is causing anxious investors, who are pulling back from stocks and moving into bonds. The 5/1 refi Adjustable Rate Mortgage interest rates are listed at 3.625% and April of 3.852%.

Bankrate.com, which puts out a weekly mortgage rate trend index, found that more than half of the experts it surveyed say rates will go down. One point equals 1 percent of the loan amount. "The year-over-year increase was driven by conventional loans, which tend to be larger, leading to a record high for the average purchase loan size".

Nervous investors and political uncertainty are causing some mortgage market observers to consider a new interest rate wrinkle: the possibility that the Federal Reserve may delay an expected short-term rate hike. "Purchase volume is running more than 9 percent above last year's pace, with conventional purchase application volume up more than 12 percent".

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