Market reaction to the Fed’s announcement would determine next week’s rate, says economist
Mortgage rates saw a slight decrease during the week as the Federal Open Market Committee decided to keep rates steady, according to Bankrate.com's weekly national survey.
The survey found the rate for the benchmark 30-year fixed mortgage fall to 4.09% from 4.11% a week ago. On average, discount and origination points for this mortgage type was 0.24. The 15-year fixed mortgage saw its average rate unchanged from last week at 3.31%. It had 0.18 average discount and origination points.
While the rate for jumbo 30-year fixed mortgage rose to 4.08%, rate changes for adjustable mortgages were mixed. The rate for 3-year ARM climbed to 3.52%, the 5-year ARM rate slid to 3.50% and the 3.91% rate for the 10-year ARM was unchanged from a week ago.
According to Freddie Mac’s survey, rates saw decreases for the second week in a row. The rate was 3.92% for 30-year fixed-rate mortgages, with an average 0.5 point, for the week ending July 27. This compares to an average rate of 3.96% a week ago. The 15-year fixed-rate mortgage had an average rate of 3.20% with an average 0.5 point, a decline from last week’s 3.23% average. For the 5-year Treasury-indexed hybrid ARM, the average rate was 3.18% with an average 0.5 point, falling from 3.21% a week ago.
"The 10-year Treasury yield rose 5 basis points this week while the 30-year mortgage rate dropped 4 basis points to 3.92 percent. Mortgage rates in next week's survey would depend on how the market reacts to the Fed's balance sheet unwinding announcement,” said Sean Becketti, chief economist at Freddie Mac.
Bankrate.com said rates initially saw gains driven by strong corporate earnings and a rising stock market. However, the rates slid back near last week’s levels following Fed’s concerns about low inflation.
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The survey found the rate for the benchmark 30-year fixed mortgage fall to 4.09% from 4.11% a week ago. On average, discount and origination points for this mortgage type was 0.24. The 15-year fixed mortgage saw its average rate unchanged from last week at 3.31%. It had 0.18 average discount and origination points.
While the rate for jumbo 30-year fixed mortgage rose to 4.08%, rate changes for adjustable mortgages were mixed. The rate for 3-year ARM climbed to 3.52%, the 5-year ARM rate slid to 3.50% and the 3.91% rate for the 10-year ARM was unchanged from a week ago.
According to Freddie Mac’s survey, rates saw decreases for the second week in a row. The rate was 3.92% for 30-year fixed-rate mortgages, with an average 0.5 point, for the week ending July 27. This compares to an average rate of 3.96% a week ago. The 15-year fixed-rate mortgage had an average rate of 3.20% with an average 0.5 point, a decline from last week’s 3.23% average. For the 5-year Treasury-indexed hybrid ARM, the average rate was 3.18% with an average 0.5 point, falling from 3.21% a week ago.
"The 10-year Treasury yield rose 5 basis points this week while the 30-year mortgage rate dropped 4 basis points to 3.92 percent. Mortgage rates in next week's survey would depend on how the market reacts to the Fed's balance sheet unwinding announcement,” said Sean Becketti, chief economist at Freddie Mac.
Bankrate.com said rates initially saw gains driven by strong corporate earnings and a rising stock market. However, the rates slid back near last week’s levels following Fed’s concerns about low inflation.
Related stories:
Fannie Mae: Slow growth expected in 2017
Fannie, Freddie are ‘unsustainable,’ says Fed official
