The average rate for the 5-year Treasury-indexed hybrid adjustable-rate mortgage however rose two basis points to 2.76%. “The 30-year fixed-rate mortgage fell 2 basis points to 3.43 percent this week, erasing last week’s uptick”. Even the Federal Reserve minutes, which were released Wednesday, provided no clear signal. It was 2.76 percent a week ago and 3.15 percent a year ago.
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Similarly, the average rate for a 15-year FRM dropped a single basis point to 2.74% on a weekly basis and 41 basis points year-over-year.
The bond market has been docile lately, and mortgage rates have moved sideways as a result.
According to Freddie Mac’s Primary Mortgage Market Survey, during the week ended August 18, the average rate for a 30-year, fixed-rate mortgage (FRM) was 3.43%, down from 3.45% the previous week. One point equals 1 percent of the loan amount. 20 year FRMs are listed at 3.250% today and an April of 3.469%.
The 2.55pc mortgage has a maximum loan-to-value of 85pc, making it a potential option for first-time buyers with a sizeable deposit, or for those up-sizing.
“For eight consecutive weeks mortgage rates have ranged between 3.41 and 3.48 percent”, Freddie’s Chief Economist Sean Becketti said.
The NerdWallet Mortgage Rate Index compiles annual percentage rates – lender interest rates plus fees, the most accurate way for consumers to compare rates.
The lender also offers a 10 year fixed-rate deal at 2.49pc, for 65pc loan-to-value, and has cut rates on its two and five year offerings too.
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“Application volume dropped across the board for both refinance and purchase loans last week, despite little change in rates”, said Mike Fratantoni, MBA chief economist. “Although much of the financial volatility from Brexit has subsided, long-term Treasury yields continue to face downward pressure, and we expect them to remain low for some time”.
