The key fixed mortgage rate dropped for the week on lower Treasury yields, Freddie Mac reported on Thursday. A year ago, the average 30-year mortgage rate was 3.82 percent, while the rate for 15-year loans was 3.08 percent.
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The benchmark 30 year fixed rate mortgages are 3.625 % at Citi Mortgage (NYSE:C) yielding an April of 3.836 %.
As for 15-year fixed-rate mortgages, these averaged 2.98 percent, down from last week’s 3.03 percent average.
Mortgage rates were little changed as little definitive information about either the global economy or US economy hit the markets.
Low mortgage rates and the constant improvement of the labor market have helped the real estate market in the United States to achieve what looks like a stable level in recent months. Past year at this time, the same ARM averaged 2.91%. The average rate on one-year ARMs jumped to 2.62 percent from 2.54 percent; the fee was steady at 0.2 point. Last year, the 1-year Treasury-indexed adjustable-rate mortgage average was 2.41 percent. The 30-year fixed dropped 3 basis points, improving to 3.79 percent from last week’s 3.82 percent.
“Following Federal Reserve Gov. Daniel Tarullo’s remarks last week, Treasury yields dipped”. He noted that housing starts beat expectations in September and builder confidence was at a 10-year high.
According to the latest data from the Mortgage Bankers Association, the market composite index – a measure of total loan application volume – climbed 11.8 percent from the previous week.
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Meanwhile, mortgage application volume has been volatile lately because of the new mortgage disclosure rules for lenders that took effect October. 3. Purchase applications rose 16%, while refinances were up 9%.
