Rates came down slightly this week, ending a brief, two-week streak of increases. The 10-year Treasury yield dipped 6 basis points, while the 30-year fixed mortgage rate fell 3 basis points to 3.88 percent.
The 30-year mortgage rate fell this week for the first time since the presidential election, dropping 12 basis points to 4.20 percent. This marks the first time since 2014 that mortgage rates opened the year above 4 percent. Despite this week’s breather, the 66-basis point increase in the mortgage rate since November 3, is taking its toll–the MBA’s refinance index plunged 22 percent this week.
30-year fixed-rate mortgage averaged 3.45 percent with an average 0.5 point for the week ending August 11, 2016, up from last week when it averaged 3.43 percent. A year ago at this time, the 30-year FRM averaged 3.94 percent.
15-year FRM this week averaged 2.76 percent with an average 0.5 point, up from last week when it averaged 2.74 percent. A year ago at this time, the 15-year FRM averaged 3.17 percent.
5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.74 percent this week with an average 0.5 point, up from last week when it averaged 2.73 percent. A year ago, the 5-year ARM averaged 2.93 percent.
The average 30-year fixed rate mortgage (FRM) rate jumped up to 3.80% during the week ending May 27, 2016. The 15-year FRM rate also increased to 2.93%.
FRM rates have remained relatively low during the recovery from the Great Recession due to near-zero short-term borrowing rates set by the Federal Reserve (the Fed). The Fed raised the short-term rate by 0.25% on December 17, 2015 following seven years at essentially zero.
However, FRM rates will not see the ripple effects of the rate hike until late 2016 at the earliest, but likely in 2017 as the bond market weakens in price. . . . Read the rest Here.