A government shutdown was averted. Shorter term 15 year fixed rate loan interest rates are available starting at 3.22% today with an April of 3.412%. The two events expected to rock the mortgage market never came to fruition.
Advertisement
While student loan debt does play a role in the low homeownership rates among millennials, it does not fully explain why this generation is slow to purchase a home, according to Freddie Mac’s monthly Insight & Outlook for September released Wednesday. The highest average rate on the 30-year FRM was measured in the Southwest region this week, where this fixed conventional mortgage came out at a rate of 3.90% with 0.5 discount points. A year ago at this time, the 15-year FRM averaged 3.36%.
Mortgage adviser Toma Sojonky says a recent move by lenders to prune their discounts to the prime rate for new variable rate loans has borrowers pausing and considering their options.
Ontario’s largest credit union, Meridian, today announced it is offering a five-year closed variable rate mortgage at 1.85 per cent April.
Adjustable mortgage rates remained steady, with the 5-year ARM holding at 3.19 percent and the 7-year ARM slipping to 3.34 percent. Similarly, the 1-year ARM retained its average rate from last week, as it’s still stands at 2.53%.
“In contrast to the volatility in equity markets, the 10-year Treasury rate-a key driver of mortgage rates-varied just a little more than 10 basis points over the last week”.
On the other hand, average rates on flexible mortgage loans remained unchanged this week, the government-sponsored enterprise’s data showed.
Advertisement
The Mortgage Bankers Association reports an nearly 7 percent decline in loan application volume from the previous week.
