Last week, we can recall how mortgage rates soared alongside global interest rates with the 10-year Treasury yield increasing 10 basis points. Now, after fully assimilating Treasury yield increases in the past weeks, mortgage ratescontinued its march forward with the 30-year mortgage rate clearing the 4 percent mark for the first time since May.
The Report
Per Freddie Mac’s Primary Mortgage Market Surveyfor the week ending July 13, 2017:
The 30-year fixed-rate mortgage rose to 4.03 percent from last week’s 3.96 percent. During the same time a year ago, the 30-year FRM average finished at a much lower tier (3.42 percent). This was during the peak of the Brexit ripple.
The 15-year fixed-rate mortgage also slightly increased from the previous week’s 3.22 percent record to the survey week’s 3.29 percent. A year back, the median for the 15-year FRM was 2.72 percent.
The 5-year Treasury-indexed hybrid adjustable-rate mortgage concluded with 3.28 percent, also up from 3.21 percent the week prior. A year ago, the 5-year ARM average finished at 2.76 percent.
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The Survey
The Primary Mortgage Market Survey® was established in April 1971 as the foremost source of mortgage trends in the regional and national level. Its data is utilized by both the public and the mortgage industry at large to gauge market conditions and evaluate mortgage loan options.
Survey Parameters
The survey results are gathered based on lenders’ most popular mortgage products – inclusive of 30 and 15-year FRMs as well as adjustable-rate mortgages. The first-lien prime conventional conforming home purchase mortgages (with an LTV of 80 percent) are considered primary basis for the survey. Meanwhile, the U.S. Treasury yields are used to index ARMs. Lenders are asked to provide the a) initial coupon rate and points, as well as b) ARM margins for this purpose.
