Home loan rates continued their upward march this week.According to the
most current information launched Thursday by Freddie Mac, the 30-year fixed-rate average climbed up to 4.6 percent with a typical 0.4 point, its highest level in almost two months. (Points are fees paid to a lending institution equal to 1 percent of the loan quantity.) It was 4.54 percent a week ago and 3.93 percent a year ago.The 15-year fixed-rate average grew to 4.08 percent with a typical 0.4 point. It was 4.02 percent a week ago and 3.18 percent a year back. The five-year adjustable rate average rose to 3.93 percent with a typical 0.2 point. It was 3.87 percent a week back and 3.15 percent a year earlier.
“Home loan rates trended higher over the past week as President Donald Trump and European Commission President [Jean-Claude] Juncker consented to avert a trade war toward completion of the week, easing some of the trade stress that had been putting down pressure on rates,” stated Aaron Terrazas, senior economic expert at Zillow. “Strong Q2 GDP information released on Friday also contributed to the trend, but strong data were largely expected and already priced in to rates. The strength of the economy was reinforced in Wednesday’s [Federal Free Market Committee] statement, strengthening expectations for future rate hikes this year.”
puts out a weekly mortgage rate trend index, found that almost half the specialists it surveyed state rates will move higher in the coming week. Elizabeth Rose, a sales manager at Nations Lending, is one who anticipates rates to increase.”With a constant stream of good news in the economy, home mortgage bonds are under pressure, “Rose stated.” When financial news is excellent, mortgage rates rise-and this trend is most likely to stay in place. In the coming months, the Treasury will increase the quantity of financial obligation supply in the market, including extra pressure to home mortgage bonds and keep home mortgage rates on the uphill climb.”However Michael Becker, a branch manager at Sierra Pacific Mortgage, makes the argument that rates are most likely headed down.” The rise in Treasury yields and home loan rates over the last couple weeks
has more to do with increased supply of Treasurys to fund the Trump tax cut than concern over the Fed hiking rates,”Becker said. “When the bond market acclimates to this higher supply, I think some bond investors will be drawn by the greater yields and look to purchase. This will assist drive rates a little lower in the coming week.”Meanwhile, home mortgage applications declined for the 3rd week in a row, according to the latest data from the Home mortgage Bankers Association. The marketplace composite index- a measure of overall loan application volume-decreased 2.6 percent from a week previously. The re-finance index fell 2 percent, while the purchase index dropped 3 percent.The refinance share of home mortgage activity accounted for 37.1 percent of all applications.”The 30-year fixed rate reached its highest level in a month
due to relieving trade tensions in between the U.S. and Europe, and signals of economic growth in Japan
and Europe,”said David Stevens, MBA president.” The purchase index was at its least expensive level in a month as low housing inventory and increasing house prices continue to be a concern.”
Source
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