Despite an increase in 30-year rates, the 15 year managed a new low for 2011. But loans of both amortizations might be better in next week’s reports.
Thirty-year mortgage rates turned higher in Freddie Mac’s Primary Mortgage Market Survey for the week ended Thursday, with the average 30-year fixed-rate mortgage inching up to 4.50 percent from 4.49 percent a week earlier. The 30-year was 4.75 percent in the same week last year.
The yield on the 10-year Treasury Note has fallen to 2.94 percent during trading today from 3.01 percent at the close of the markets last Thursday, according to quotes from the Department of the Treasury and the Wall Street Journal. That puts the 30-year mortgage in the neighborhood of 4.43 percent in next week’s reports from Freddie. The lowest level on record for the 30-year was reached in the week ended Nov. 11, 2010:Â 4.17 percent.
One might expect mortgage rates to rise over the next week based on a majority of Bankrate.com panelists surveyed for the week June 16 to June 22. Rates will stay within 2 basis points of their current levels according to 31 percent of the surveyed group, and only 13 percent predicted a decline.
The June 2011 Economic and Housing Market Outlook from Freddie indicated that the 30-year will average 4.7 percent in the second and third quarters and end the year at 4.9 percent.
The spread between the conforming 30-year mortgage and the jumbo 30-year mortgage was unchanged from the prior week at 52 BPS, according to the U.S. Mortgage Market Index report from Mortech Inc. and MortgageDaily.com for the week ended June 10.
Freddie reported the average 15-year fixed-rate mortgage at 3.67 percent, just under 3.68 percent a week ago and still at the lowest level since 3.57 percent in the week ended Nov. 11, 2010. The spread between the 30-year mortgage and 15-year rates expanded to 83 BPS from 81 BPSÂ last week — making the 15-year mortgage more attractive.
The five-year, hybrid, Treasury-index, adjustable-rate mortgage — like the 15-year loan — was 1 basis point better in Freddie’s report at 3.27 percent.
But the one-year Treasury-indexed ARM was up 2 BPS to 2.97 percent. Freddie said that the one-year was 3.82 percent last year at this time. The second-quarter and third-quarter averages for the one-year are both predicted to come in at 3.2 percent based on Freddie’s forecast then slowly creep up to 3.7 percent by the end of next year.
The yield on the one-year Treasury closed Wednesday at 0.19 percent, just a bit more than 0.18 percent seven days earlier, Treasury Department data indicated. Bankrate.com reported that the six-month LIBORÂ edged down to 0.39 percent this week from 0.40 percent the prior Wednesday.
The Mortgage Market Index report had ARM share of loan inquiries rising to 10.52 percent during the latest week from 9.47 percent.
ARM share of originations is projected by Freddie to reach 11 percent in the second and third quarters then ease in the final three months of 2011.
