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| A few more people hunted for mortgage loans even as rates continued to ascend.
The 30-year fixed-rate mortgage averaged 5.80%, climbing six basis points from last week, according to Freddie Mac’s latest Primary Mortgage Market Survey and 10 PBS from a year ago. “Mortgage rates look like they are back on track where the Fed wants them, which is gradually rising,” commented Freddie chief economist Frank Nothaft in an announcement. The 30-year average will rise to 5.9% next quarter and to 6.0% early next year, according to Freddie’s September forecast. Even so, none of the 100 mortgage “experts” surveyed by Bankrate.com this week believe mortgage rates will rise over the next 30 to 45 days, two-thirds of the panel expect them to remain relatively unchanged while the rest think they’ll drop. The 15-year average climbed five BPS from a week ago to 5.37%, Freddie said. Late Thursday, the 10-year Treasury note yielded 4.18% with a price of 100.53, better than 4.22% and 100.22 a week earlier. The 5-year Treasury-indexed hybrid adjustable-rate mortgage average of 5.31% went up five BPS from the prior week. Up two BPS from a week ago, the average for the 1-year Treasury-indexed ARM came in at 4.48%, Freddie reported. The index used to gauge ARMs, the 1-year T-bill had a larger increase — at 3.92% on Tuesday, it climbed 11 BPS from last week, the Federal Reserve said. The volume of 1003s edged up 2% last week from seven days earlier, the Mortgage Bankers Association reported, as the 3% decline in purchase money loan application activity offset a 7% increase in refinance requests. While the refi share of mortgage activity reportedly increased to 46% from 43% in the previous week, MBA said the ARM share upticked to 30%. |
Coco Salazar is an assistant editor and staff writer for MortgageDaily.com. E-mail: [email protected]
