Interest rates on residential loans fell to a new low for this year, and it’s quite possible they could be much lower in next week’s report.
Freddie Mac reported that 30-year fixed rates averaged 4.08 percent in its Primary Mortgage Market Survey for the week ended April 13.
That turned out to be the lowest weekly average since the week ended Dec. 1, 2016, when the 30 year also averaged 4.08 percent.
Last week, 30-year fixed rates averaged 4.10 percent, while the average was 3.58 percent a year ago.
Based on mortgage-backed securities prices, MBSQuoteline Director Joe Farr said interest rates have declined further since Freddie conducted this week’s survey.
Mortgage Daily’s analysis of Treasury market activity indicates that fixed rates could plunge another 8 basis points in Freddie’s next survey.
However, a majority of the panelists surveyed by Bankrate.com for the week April 13 to April 19 predicted rates won’t move more than 2 BPS over the next week. An increase was projected by 36 percent, and just 9 percent expected rates to fall.
Based on the U.S. Mortgage Market Index report from Mortgage Daily and OpenClose for the week ended April 7, interest rates on jumbo mortgages were 10 BPS less than conforming rates, widening from 6 BPS a week earlier.
Fifteen-year fixed rates averaged 3.34 percent in Freddie’s most-recent report, 2 BPS less than in the week ended April 6. Fifteen-year rates were 74 BPS less than 30-year rates. The spread was no different the in the previous report.
Freddie reported that five-year, Treasury-indexed, hybrid, adjustable-rate mortgages averaged 3.18 percent, a basis point less than in last week’s report.
The yield on the one-year Treasury note, which determines rates changes on hybrid ARMs, closed Thursday at 1.03 percent, lower than 1.05 percent seven days earlier, according to Treasury Department data.
Another ARM index, the six-month London Interbank Offered Rate, was 1.42 percent as of Wednesday, Bankrate.com reported. LIBOR was off from 1.43 percent the prior Wednesday.
The most-recent Mortgage Market Index report had ARM share at 8.4 percent, thinner than 9.0 percent the previous week.
