Mortgage rates reach their highest levels in almost four years

Home loan rates have not been this high in nearly 4 years, simply as the spring home-buying season is heating up.According to the current information released Thursday by Freddie Mac, the 30-year fixed-rate average shot up to 4.38 percent with a typical 0.6 point.(Points are charges paid to a lending institution equal to 1 percent of the loan amount.) It was 4.32 percent a week earlier and 4.15 percent a year earlier. The 30-year fixed rate last hit this height in April 2014. The 15-year fixed-rate average leapt to

3.84 percent with a typical 0.5 point. It was 3.77 percent a week earlier and 3.35 percent a year ago. The five-year adjustable rate average increased to 3.63 percent with a typical 0.4 point. It was 3.57 percent a week earlier and 3.18 percent a year ago.Investors responded to news that the consumer rate index, a procedure of how fast costs are rising, increased more than expected last month. The 0.5 percent increase in the CPI was its largest gain because March 2005. The monthly Labor Department report showed boosts in the cost of gas, rent, clothes, medical care and food. Concerns about inflation caused U.S. Treasury rates to slump. Increasing inflation deteriorates the value of a bond’s set payments. With growing deficit spending expected to increase the federal government’s borrowing expenses, financiers will probably require additional yield from U.S. bonds to compensate for their risk.The yield on the 10-year Treasury leapt to a four-year high Wednesday, closing at 2.91 percent.

Due to the fact that home mortgage rates tend to follow a similar course as long-term bond yields, they likewise moved higher.”After holding steady for much of the past week, home mortgage rates shot up again on Wednesday after very strong inflation data spurred worries that the Federal Reserve will increase interest rates quicker than had been anticipated,”Aaron Terrazas, senior economic expert at Zillow, said in a statement.” There is a growing consensus that fiscal stimulus from the combination of current tax reform legislation and higher federal costs might overheat the economy, which would quicken the next economic downturn … The pattern in home loan rates is clearly upward and home consumers are progressively having to grapple with how greater home loan rates will shift their budgets.” Bankrate.com, which puts out a weekly mortgage rate trend index, found that over half of the professionals it surveyed say rates will continue to rise in the coming

week. Elizabeth Rose, branch supervisor of Movement Mortgage, is one who anticipates greater rates.”Inflation is the arch enemy of bonds,”Rose said.” The strong inflation numbers also generate rate hike worries. Expect more of the like the economy continues to enhance.

“Meanwhile, home mortgage applications plunged last week as rates rose, according to the newest data from the Home mortgage Bankers Association. The market composite index- a procedure of total loan application

volume-decreased 4.1 percent from a week earlier. The refinance index fell 2 percent, while the purchase index sank 6 percent.The re-finance share of home loan activity represented 46.5 percent of all applications. “Both purchase and refinance activity tipped over the week, decreasing to levels last seen at the start of this year, “said Joel Kan

, MBA financial expert.”Refinance activity is continuing along a floor, while the drop in

purchase may be connected to short-term stock market jitters. Purchase applications were still 4 percent greater than a year back, and we still expect activity to select up as we make our way into early spring.”

Source

http://www.chicagotribune.com/ct-biz-mortgage-rates-20180215-story.html

Home loan rates for July 16


The 30-year fixed-rate average is more than a half-percentage point higher than it was a year back. (J. David Ake/AP)

Home loan rates continued to retreat this week, pressed down by international monetary concerns.According to the most recent data released Thursday by Freddie Mac, the 30-year fixed-rate average dropped to 4.53 percent with an average 0.5 point.(Points are fees paid to a loan provider equivalent to 1 percent of the loan quantity.) It was 4.59 percent a week earlier and 3.89 percent a year ago.The 15-year fixed-rate average was up to 4.01 percent with a typical 0.5 point. It was 4.05 percent a week earlier and 3.16 percent a year earlier. The five-year adjustable rate typical slipped to 3.87 percent with an average 0.4 point. It was 3.9 percent a week ago and 3.16 percent a year earlier.” Home mortgage rates fell last week driven by financial market flight to security as the Turkish lira dropped, “stated Aaron Terrazas, senior economic expert at Zillow.” Economic advancements there normally do not pose more comprehensive threats, but the shockwaves were bigger now for two reasons: concern about the exposure of European banks to Turkish possessions and the developments coming with little other news to move markets. Beyond worldwide news, financial markets are likely to view U.S. housing market data due over the next week. The real estate market has been strong for much of the economic healing, but recent soft house sales numbers have scared markets and prompted worries of a more comprehensive economic downturn. July information should supply higher clarity on the health of the U.S. housing market and its ramifications for the more comprehensive economy.”Rising home rates and home mortgage rates have actually begun to put a damper on the real estate market. Sales stay strong in the Washington area, but affordability continues to be a concern.Bankrate.com, which puts out

a weekly home loan rate trend index, discovered that two-thirds of the professionals it surveyed state rates will remain fairly stable in the coming week. Jim Sahnger, a home mortgage organizer at C2 Financial, is one who expects rates to hold consistent.”From a financial data point of view, there has been a great deal of blended numbers that point to strength in some locations and not a lot in others, “Sahnger stated.” That, in conjunction with continued tariff stress and the current news out of Turkey, causes not much action in the bond market or home mortgage rates.

Look for rates to hold tight.”Meanwhile, fewer individuals are looking for a home mortgage as applications continued their downward slide, according to the current information from the Mortgage Bankers Association. The marketplace composite index– a procedure of total loan application volume– decreased 2 percent from a week earlier. The refinance index was unchanged from the previous week, while the purchase index fell 4 percent.The refinance share of home mortgage activity represented 37.6 percent of all applications.”The drop [in mortgage applications] was led by weak purchase-application activity, as it declined for the fifth straight week to its lowest level considering that Feb 2018 and was also down more than 3 percent from the same week a year earlier, “said Joel Kan, an MBA economist.

“Refinance applications, however, were flat over the week, held up by an increase in VA refinances.

Source

https://www.washingtonpost.com/realestate/mortgage-rates-move-lower-for-second-week-in-a-row/2018/08/16/d8388198-c22a-4d85-a80a-0212f7dcbf46_story.html

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