Mortgage rates remain below 4% amidst continued economic uncertainty as noted by Freddie Mac’s top economist in its Primary Mortgage Market Survey covering results for the week ended 22 June 2017.
The Surveyed Week Rates
During the surveyed week, there was a slight decrease across all three mortgage rate types surveyed. For one, the 30-year fixed mortgage rates dropped to 3.90% from 3.91% of the preceding week. About this time last year, 30-year FRM rates averaged 3.56%.
Moreso, the 15-year fixed mortgage went down to 3.17% compared to a week ago’s 3.18%. If it were a year ago, 15-year mortgage rates stood at 2.83%.
Lastly, the 5-year hybrid adjustable mortgage that is Treasury indexed slightly fell 3.14% during the surveyed week from 3.15% of the preceding week. The 5-year hybrid ARM rates averaged 2.83% a year ago.
To get the pertinent mortgage rate, a 0.5 point is to be paid as part of the costs of obtaining a mortgage upfront.
Freddie Mac’s Chief Economist Sean Becketti explained: “Following last week’s sharp decline, the 10-year Treasury yield rose 3 basis points this week. The 30-year mortgage rate remained relatively flat, falling 1 basis point to 3.90 percent. Mortgage rates are continuing to hold at year-to-date lows amidst ongoing economic uncertainty.”
Float or Lock – What’s Your Game Plan?
Last week’s main event was the Federal Reserve adjusting its key benchmark rate higher by a quarter percentage point. The move hardly surprised anyone as most have anticipated the rate hike, anyway.
Except for mortgages with short-term rates that are based on the federal funds rate, longer-term mortgage rates are not directly affected. As experts pointed out, mortgage rates have been on an ascent since the election and have been priced accordingly by the market to take into account any rate hike and such.
The week thus ended with mortgage bonds nearly unchanged and the experts at Mortgage Market Guide advise to float rates.
“We continue to float as we have done for weeks, and watching for the potential of a Death Cross in the 10-year Note yield as well as a Golden Cross in the Mortgage Bond market – both of which could portend lower rates in the months ahead,” said experts at the Mortgage Market Guide.