Bankrate.com said the decrease was seen along weak economic data
Mortgage rates fell slightly for the fourth consecutive week as latest economic data showed weakness in manufacturing, personal income, personal spending, construction spending, durable goods sales, and inflation, according to Bankrate.com’s weekly national survey.
The benchmark 30-year fixed mortgage rate fell to 4.04% from 4.09% a week ago. Discount and origination points for the mortgage type were 0.26 on average. For the larger jumbo 30-year fixed mortgage, rates dipped to 4.05%. The rate for the 15-year fixed mortgage decreased to 4.04% from 4.09% a week ago, with average discount and origination points of 0.24.
For the 5-year adjustable-rate mortgage, rates slid to 3.48% from 3.50%. Average discount and origination points were 0.34. The 7-year ARM rate settled at 3.66%.
Bankrate.com said the subtle changes in mortgage rates mirror the lack of volatility in the financial markets. However, the looming deadline to raise the debt ceiling may increase volatility on the likelihood that investors become nervous, resulting in market turbulence.
Freddie Mac’s weekly survey showed different rate movements, with rates virtually unchanged from the prior week. Rates for the 30-year fixed-rate mortgage averaged 3.93% with an average 0.5 point, an increase from the 3.92% average last week. The average rate for 15-year fixed-rate mortgages was 3.18% with an average 0.5 point, a decrease from the 3.20% average a week ago. The 5-year Treasury-indexed ARM saw a 3.15% average rate with an average 0.5 point, sliding from 3.18% last week.
"The 10-year Treasury yield was relatively flat this week, as was the 30-year mortgage rate which rose 1 basis point to 3.93 percent. Despite a strong advance estimate for second quarter GDP, markets are erring on the side of caution," said Sean Becketti, chief economist at Freddie Mac.
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The benchmark 30-year fixed mortgage rate fell to 4.04% from 4.09% a week ago. Discount and origination points for the mortgage type were 0.26 on average. For the larger jumbo 30-year fixed mortgage, rates dipped to 4.05%. The rate for the 15-year fixed mortgage decreased to 4.04% from 4.09% a week ago, with average discount and origination points of 0.24.
For the 5-year adjustable-rate mortgage, rates slid to 3.48% from 3.50%. Average discount and origination points were 0.34. The 7-year ARM rate settled at 3.66%.
Bankrate.com said the subtle changes in mortgage rates mirror the lack of volatility in the financial markets. However, the looming deadline to raise the debt ceiling may increase volatility on the likelihood that investors become nervous, resulting in market turbulence.
Freddie Mac’s weekly survey showed different rate movements, with rates virtually unchanged from the prior week. Rates for the 30-year fixed-rate mortgage averaged 3.93% with an average 0.5 point, an increase from the 3.92% average last week. The average rate for 15-year fixed-rate mortgages was 3.18% with an average 0.5 point, a decrease from the 3.20% average a week ago. The 5-year Treasury-indexed ARM saw a 3.15% average rate with an average 0.5 point, sliding from 3.18% last week.
"The 10-year Treasury yield was relatively flat this week, as was the 30-year mortgage rate which rose 1 basis point to 3.93 percent. Despite a strong advance estimate for second quarter GDP, markets are erring on the side of caution," said Sean Becketti, chief economist at Freddie Mac.
Related stories:
Mortgage rates fall slightly as Fed express inflation concerns
Mortgage applications lower, refinance loans slip
