It’s been a good week for borrowers as mortgage rates have improved slightly thanks to easing political tensions in Italy. Rates are expected to rise over the coming weeks and months so if you’re looking to buy or refinance, you should do it soon. Read on for more details.
Where are mortgage rates going?
Mortgage fall in Freddie Mac PMMS
It’s good news for anyone looking to buy a home or refinance their current mortgage as mortgage rates fell for the second consecutive week in this week’s Freddie Mac Primary Mortgage Market Survey. This now puts the average rate on a 30-year fixed rate at a 7-week low. Here are the numbers:
- The average rate on a 30-year fixed rate mortgage fell two basis points down to 4.54% (0.5 points)
- The average rate on a 15-year fixed rate mortgage slid five basis points to 4.01% (0.4 points)
- The average rate on a 5/1-year adjustable rate mortgage dropped six basis points to 3.74% (0.4 points)
Here is what the Economic and Housing Research Group at Freddie Mac had to say about rates this week:
“Mortgage rates dipped for the second consecutive week.
Homebuyers have taken advantage of the recent moderation in rates, which led to a 4 percent increase in purchase applications last week.
Although demand has remained steadfast against the backdrop of this year’s higher borrowing costs, it’s important to note that the growth rate of purchase loan balances has moderated so far this year – and particularly since March. This slowdown indicates that buyers are having difficulty stretching to keep up with the pace of home-price growth.
While the very healthy job market continues to fuel interest in buying a home, the supply shortages in most markets are pushing prices higher and currently keeping sales at a standstill. Listings for new and existing homes need to increase in the months ahead to moderate price growth and reignite sales activity.”
Lock before rates rise
Mortgage rates are down to levels that haven’t been seen for almost two months. This is clearly great news for anyone who is about to buy a new home or refinance their current mortgage. However, mortgage rates are expected to tick back up in the coming weeks and months so you’ll want to take action soon to avoid the risk of locking in a higher rate.
Today’s economic data:
Applications filed for U.S. unemployment benefits fell 1,000 from the prior week putting them at 222,000.
Notable events this week:
- Factory Orders
- PMI Services Index
- ISM Non-Mfg Index
- International Trade
- Productivity and Costs
- EIA Petroleum Status Report
- Jobless Claims
- Wholesale Trade
Filed Under: Current Mortgage Rates, Mortgage Interest Rates, Mortgage Rate Trends and Analysis, Mortgage Rates, Rates
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