Looking at mortgage rates for the week of 4-30-206 and talking about the latest economic news that could impact buyers and sellers…
Freddie Mac on Mortgage Rates:
This is the second week in a row that Freddie Mac said that mortgage rates increased:
- 30 year fixed-rate mortgages averaged 3.66%
- Last week, 30 year fixed-rate mortgages average 3.59%
- Last year at this time, 30 year fixed-rate mortgages averaged 3.68%
- 15 year fixed-rate mortgages this week averaged 2.89%
- Last week, 15 year fixed-rate mortgages averaged 2.85%
- Last year at this time, 15-year fixed-rate mortgages averaged 2.94%
Check out the chart from Freddie Mac:
Sean Becketti, chief economist, Freddie Mac said:
Treasury yields marched higher this week. As a result, the 30-year mortgage rate jumped 7 basis points to 3.66 percent. The Federal Reserve’s decision to leave the Federal funds rate unchanged triggered a 9 basis point drop in the 10-year Treasury yield on Wednesday, however the drop occurred too late to impact this week’s survey.
Becketti mentioned the Fed leaving their benchmark rate unchanged as you probably recall from yesterday’s post. More on this later after we get through looking at the rest of this week’s average rates…
Bankrate on Mortgage Rates:
Bankrate.com also reported that mortgage rates increased:
The average 30 year fixed rate mortgages increased to 3.83% from 3.75%
The average 30 year fixed rate jumbo mortgages increased to 3.76% from 3.67%
The MBA on Mortgage Rates:
The MBA also reported that rates increased:
The average contract interest rate for 30 year fixed rate mortgages with conforming loan balances ($417,000 or less) was 3.85% for 80% loan-to-value ratio (LTV) loans. This is up from the 3.83% reported last week.
The average contract interest rate for 30 year fixed rate mortgages with jumbo loan balances (greater than $417,000) was 3.78% for 80% LTV loans. This is up from the 3.77% reported last week.
The average contract interest rate for 15 year fixed rate mortgages was 3.09% for 80% LTV loans. This is up from the 3.06% reported last week.
The Take Away:
The bad news is that all 3 sources I use to track mortgage rates reported increases…
The good news is that the Fed left their benchmark rate unchanged.
However, we must remember these rates are from before the Fed announcement. And we do not when the Fed will raise rates again. Many are thinking it will be June but the truth is no one knows for sure.
Not even the Fed!
But what we do know is that mortgage rates are STILL super low.
How much longer is hard to say.
Some indicators we received this week of where we are headed included:
Initial jobless claims came in lower than expected but were higher than last week’s super low.
Personal income in March rose 4.2% YoY.
As I have been preaching for years, we MUST have good paying jobs that pay real wages for a healthy economy and housing market.
Inflation came in low at .8% YoY.
GDP came in low which I think is part of the reason the Fed put off raising rates.
Another distressing indicator is that durable goods orders fell.
UoM April consumer confidence fell to the lowest level since September 2015.
The Bloomberg Consumer Comfort Index improved but is still low.
Looking at all of these and it is hard to see how the Fed could have justified raising rates.
What the Fed does in June is anyone’s guess and we will just have to keep an eye on the economy.
The Fine Print: As always, I am providing this to you for informational purposes only! I am a REALTOR and blogger in Anderson SC and not a mortgage lender. You should contact the lender of your choice directly to learn more about its mortgage products and your eligibility for such products. My suggestion is that ALL serious legitimate buyers take the first step and talk with a mortgage professional.