Finally, after weeks of defying market expectations, mortgagerates hiked, following a global increase in interest rates. The 10-year Treasury yield increased by 10 basis points at the end of a holiday-shortened week, according to Freddie Mac’s latest Primary Mortgage Market Survey.
The Report
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- The 30-year fixed-rate mortgage average went up from 3.88 percent last week to 3.96 for week ending July 6, 2017. During the same time a year ago, the 30-year average finished at 3.41 percent.
- The same fate is also evident for the 15-year fixed-rate mortgage which concluded with 3.22 percent this week compared to just 3.17 percent the week prior. Back in the same week in 2016, the 15-year fixed-rate mortgage average concluded at 2.74 percent.
- The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.21 percent this week, another increase from last week’s 3.17 percent. A year ago, the 5-year FRM finished at a 2.68 percent average.
Mortgage applications rose alongside mortgage rates, an indication that borrowers who weren’t able to take advantage of the previous lows wanted to take their chances while they still have a one, before rates continue to push up. But will it?
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.
