Posts Tagged ‘ fixed-rate mortgage (FRM) ’

Yellen’s Likely Confirmation Puts the Brakes on Rising Interest Rates

Yellen’s Likely Confirmation Puts the Brakes on Rising Interest Rates

BY: TORY BARRINGER

Mortgage rates shifted down this week, according to reports from Freddie Mac and finance website Bankrate.com.

Freddie Mac’s Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaging 4.22 percent (0.7 point) for the week ending November 21, a decrease from 4.35 percent last week. A year ago at this time, the 30-year FRM averaged 3.31 percent.

The 15-year FRM averaged 3.27 percent (0.7 point) this week, down from 3.35 percent. The 5-year adjustable-rate mortgage (ARM) average also retreated, averaging 2.95 percent (0.5 point), while the 1-year ARM was unchanged at 2.61 percent (0.4 point).

The declines accompanied a week of lukewarm economic data.

“Fixed mortgage rates fell this week on reports of weaker manufacturing growth and declines in overall inflation rates,” said Frank Nothaft, VP and chief economist for Freddie Mac.

Manufacturing numbers show industrial production falling 0.1 percent in October, while the consumer price index dropped the same amount. Annually, consumer prices are up 1 percent, “the smallest increase since October 2009,” Nothaft said.

Meanwhile, Bankrate’s weekly national survey has the 30-year fixed average dropping to 4.39 percent, with the 15-year fixed falling to 3.42 percent. The 5/1 ARM was also down, falling a few points to 3.28 percent.

While Freddie Mac attributed this week’s movements to economic stats, Bankrate pointed to another cause.

“After two consecutive weeks moving to the upside, mortgage rates reversed course following Federal Reserve Chair nominee Janet Yellen’s comment that ‘there is more the Fed can do,’” Bankrate said in a release.

“Investors took this to mean that the Fed will not be in a hurry to rein in stimulus or boost interest rates,” Bankrate explained, “and that helped bring both bond yields and mortgage rates back down.”

Mortgage Rates Reverse Trend, Heading Higher

Mortgage Rates Reverse Trend, Heading Higher

BY: TORY BARRINGER

Three weeks after the end of the showdown that closed the government, economic data has shown enough improvement to provide some lift to mortgage rates.

Freddie Mac’s Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaging a rate of 4.16 percent (0.8 point) for the week ending November 7, up from last week’s average of 4.10 percent. A year ago, the 30-year FRM was averaging 3.40 percent.

The 15-year FRM this week averaged 3.27 percent (0.7 point), rising from 3.20 percent.

“Fixed mortgage rates rebounded slightly this week on more positive economic data releases,” said Frank Nothaft, VP and chief economist at Freddie Mac. “Production in the

manufacturing industry expanded for the fifth month in a row in October to the strongest pace since April 2011. Similarly, the non-manufacturing sector grew for the second consecutive month in October and beat the market consensus forecast of a decline. These increases were widespread across the nation, from Chicago to Milwaukee to New York.”

Adjustable rates, on the other hand, were flat to down. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent (0.5 point) this week, unchanged from last week, while the 1-year ARM was 2.61 percent (0.5 point), down from 2.64 percent.

Financial site Bankrate.com reported similar findings in its weekly national survey, with the 30-year fixed average coming up to 4.35 percent and the 15-year fixed rising to 3.42 percent.

Bankrate’s measure for the 5/1 ARM, meanwhile, slid down 1 basis point to 3.25 percent.

“Mortgage rates moved higher this week as the post-government shutdown clouds have begun to lift. While the economic news hasn’t been stellar, it hasn’t shown that the economy cratered due to the shutdown and debt ceiling brinksmanship,” Bankrate said in a release. “This has been enough to lift yields on long-term government bonds and mortgage rates, leading in to this Friday’s release of the October jobs report.”

 

Mortgage Rates Reverse Trend, Heading Higher

Mortgage Rates Reverse Trend, Heading Higher

11/07/2013BY: TORY BARRINGER

Three weeks after the end of the showdown that closed the government, economic data has shown enough improvement to provide some lift to mortgage rates.

Freddie Mac’s Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage (FRM) averaging a rate of 4.16 percent (0.8 point) for the week ending November 7, up from last week’s average of 4.10 percent. A year ago, the 30-year FRM was averaging 3.40 percent.

The 15-year FRM this week averaged 3.27 percent (0.7 point), rising from 3.20 percent.

“Fixed mortgage rates rebounded slightly this week on more positive economic data releases,” said Frank Nothaft, VP and chief economist at Freddie Mac. “Production in the

manufacturing industry expanded for the fifth month in a row in October to the strongest pace since April 2011. Similarly, the non-manufacturing sector grew for the second consecutive month in October and beat the market consensus forecast of a decline. These increases were widespread across the nation, from Chicago to Milwaukee to New York.”

Adjustable rates, on the other hand, were flat to down. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 2.96 percent (0.5 point) this week, unchanged from last week, while the 1-year ARM was 2.61 percent (0.5 point), down from 2.64 percent.

Financial site Bankrate.com reported similar findings in its weekly national survey, with the 30-year fixed average coming up to 4.35 percent and the 15-year fixed rising to 3.42 percent.

Bankrate’s measure for the 5/1 ARM, meanwhile, slid down 1 basis point to 3.25 percent.

“Mortgage rates moved higher this week as the post-government shutdown clouds have begun to lift. While the economic news hasn’t been stellar, it hasn’t shown that the economy cratered due to the shutdown and debt ceiling brinksmanship,” Bankrate said in a release. “This has been enough to lift yields on long-term government bonds and mortgage rates, leading in to this Friday’s release of the October jobs report.”

 

Mortgage Rates Hold Steady Amid Stalemate on Capitol Hill

Mortgage Rates Hold Steady Amid Stalemate on Capitol Hill

10/11/2013 BY: TORY BARRINGER

Fixed mortgage rates held more or less steady this week as Capitol Hill remained locked in debate over budgetary concerns.

According to data in Freddie Mac’s Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 4.23 percent (0.7 point) for the week ending October 10, just up from 4.22 percent last week. A year ago at this time, the 30-year FRM averaged 3.39 percent.

The 15-year FRM this week averaged 3.31 percent (0.7 point), up from 3.29 percent previously.

News was similar for adjustable rates. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.05 percent (0.4 point), rising from 3.03 percent. The 1-year ARM averaged 2.64 percent (0.4 point), increasing a single basis point.

In addition to putting markets into a “wait and see” position, the federal debt impasse made for a “light week of economic data releases”-giving investors little to react to, explained Frank Nothaft, VP and chief economist for Freddie Mac.

Meanwhile, Bankrate.com recorded a fifth consecutive week of declines for fixed rates in its weekly national survey. According to the site, the 30-year fixed averaged 4.39 percent this week-down from 4.41 percent-while the 15-year fixed was flat at 3.47 percent.
The 5/1 ARM experienced the greatest movement, falling 6 basis points to 3.34 percent.

“The ongoing government shutdown and the looming debt ceiling deadline have made investors cautious. The prospect for slower economic growth has investors moving into longer-term government and mortgage-backed bonds, bringing yields lower,” Bankrate said in a release. “This has been good for mortgage rates, which are closely related to yields on long-term government bonds.”

Interest Rates Hold Ground After August Jobs Report

Interest Rates Hold Ground After August Jobs Report

BY: TORY BARRINGER

August’s mixed employment numbers did little to move mortgage rates this week, according to surveys from Freddie Mac and Bankrate.com.

Freddie Mac’s Primary Mortgage Market Survey shows the average 30-year fixed rate staying put at 4.57 percent (0.8 point) for the week ending September 12. Last year at this time, the 30-year fixed averaged 3.55 percent.

The 15-year fixed-rate mortgage (FRM) averaged 3.59 percent (0.7 point), also unchanged from last week.

Adjustable rates, meanwhile, dipped. The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.22 percent (0.5 point) this week, a drop from

last week’s 3.28 percent. The 1-year ARM averaged 2.67 percent (0.4 point), down from 2.71 percent.

“Mortgage rates were little changed this week following a mixed employment report,” said Frank Nothaft, VP and chief economist for Freddie Mac. “For example, the economy added 169,000 jobs in August, which was below the market consensus forecast, and revisions subtracted another 74,000 from the prior two months. Meanwhile, the unemployment rate fell to 7.3 percent, which was the lowest since December 2008.”

Bankrate’s weekly national survey showed equally modest movements. The 30-year FRM averaged 4.71 percent, down a single basis point, while the 15-year fixed rate rose the same amount to 3.75 percent.

The 5/1 ARM averaged 3.65 percent, unchanged week-over-week.

“The rise in mortgage rates in recent months has been in anticipation of the Federal Reserve beginning to slow the pace of their monthly bond purchases. With the moment of truth now close at hand, as the Fed meeting concludes on Sept. 18, it is wait-and-see time for mortgage rates,” Bankrate said in its release. “Whether the Fed tapers this month or not is likely to be a game-time decision, but it is inevitable. If it doesn’t happen this month, speculation will immediately begin to swirl about an October start.”

Mortgage Interest Rates Pick Up Amid Economic Gains

Mortgage Interest Rates Pick Up Amid Economic Gains

09/05/2013 BY: TORY BARRINGER

Mortgage rates bounded back up this week, nearly matching their year-highs as markets await Friday’s Employment Situation Report.

Freddie Mac’s Primary Mortgage Market Survey put the 30-year fixed-rate mortgage (FRM) at an average 4.57 percent (0.7 point) for the week ending September 5, up from 4.51 percent in August’s last week. A year ago at this time, the 30-year FRM averaged 3.55 percent.

The 15-year FRM this week averaged 3.59 percent (0.7 point), up from 3.54 percent previously.

Adjustable rates also climbed. The 5-year Treasury-index hybrid adjustable-rate mortgage (ARM) averaged 3.28 percent this week (0.5 point), rising from 3.24 percent.

The 1-year ARM reached 2.71 percent (0.5 point), up from 2.64 percent.

Freddie Mac chief economist Frank Nothaft attributed the week’s gains to recent economic improvements.

“Mortgage rates edged up this week on signs of a stronger economic recovery,” Nothaft said. “RealGDP was revised upwards to 2.5 percent growth in the second quarter of this year. In addition, residential construction spending rose for a ninth consecutive month in July. Lastly, the manufacturing industry expanded by the fastest pace in August since June 2011.”

Meanwhile, Bankrate.com reported an average 4.72 percent rate for the 30-year FRM—up 10 basis points over the week—while the 15-year FRM rose eight points to 3.74 percent.

The 5/1 ARM increased to 3.65 percent in Bankrate’s weekly national survey.

“Some better economic news, in particular news on manufacturing and the Federal Reserve’s Beige Book report, tilted the odds a little more in favor of the Fed beginning to dial back their stimulus later this month,” Bankrate said in its weekly release. “However, the decision likely hinges on the upcoming employment report, with a strong report giving the Fed the cover they need to taper their bond purchases despite the looming debt ceiling and government budget debates.”

Fixed Rates See Little Activity

Fixed Rates See Little Activity

08/08/2013BY: TORY BARRINGER

It was a mixed week for mortgage rate reports following the release of July’s employment numbers, which showed job growth coming in below the market consensus forecast.

According to Freddie Mac’s Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 4.40 percent (0.7 point) for the week ending August 8, up from 4.39 percent last week. Last year at this time, the 30-year fixed averaged 3.59 percent.

The 15-year FRM averaged 3.43 percent (0.7 point), unchanged from the previous survey.

The 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.19 percent (0.5 point) this week, up from 3.18 percent previously. Meanwhile, the 1-year ARM averaged 2.62 percent (0.3 point) down from 2.64 percent.

At the same time, Bankrate.com’s weekly national survey showed rate drops all around. The 30-year FRM averaged 4.56 percent (from 4.59 percent), while the 15-year fixed averaged 3.62 percent (from 3.65 percent).

The 5/1 ARM average was 3.53 percent, down from 3.57 percent.

“The disappointing July jobs report cast some doubt on whether the Federal Reserve would begin tapering their bond purchases in September,” Bankrate said in a release. “With encouraging and disappointing economic news offsetting each other on almost a daily basis, look for mortgage rates to remain range bound at least until there is greater clarity regarding both the economy and Fed policy.”

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