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| While application activity worsened, rates fell for the first time in seven weeks — with the lowest rates tracked in the West.
The average 30-year fixed rate mortgage fell 11 basis points from the prior week to 5.93%, according to Freddie Mac’s Primary Mortgage Market Survey released today. A year ago, the 30-year was 5.79%. This is the first time since February 10 that rates have fallen, according to data from Freddie. “Mortgage rates slipped this week on news that job creation in March came out much lower than had been expected,” said Freddie’s chief economist Frank Nothaft in the announcement. “This would indicate there is less money being spent and therefore, less inflationary pressure on the economy.” Fixed rates were highest in the North Central region of the country, where Freddie reported the average 30-year was 6.05%, and lowest in the West at 5.87%. Three out of five of the mortgage bankers, mortgage brokers and “other industry experts” surveyed by Bankrate.com expect rates to climb during the next month and a half, while the rest see no change. Around midmorning Thursday, the 10-year Treasury-note was trading at a yield of 4.41%, down 1 BPS, and a price of 96.75, up 0.13. Falling 10 BPS from the prior week, the average 15-year fixed rate was 5.48%, Freddie’s survey said. Adjustable rate mortgages followed suit — with the 5/1 hybrid ARM falling 10 BPS to 5.33%, Freddie reported, and the 1-year Treasury-indexed ARM down a single BPS to 4.23%. Reflecting previously rising adjustable rates, the share of applications that were for ARMs edged down to 35% from 37% the prior week, according to the Mortgage Bankers Association’s latest survey of commercial banks, thrifts and mortgage bankers. MBA announced a 4% decrease in overall applications — with the Market Composite Index reported at 644.5. Purchases were off by 5%, while refinances were down 3%. The share of refis was mostly unchanged at 38%, according to the survey — which reflects slightly older data than Freddie’s survey. |
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Sam Garcia has been in mortgage lending since 1980, and is publisher of MortgageDaily.com and MortgageChronicle.com. email:Â SamGarcia@MortgageDaily.com |
