Mortgage Rates Back to 2017 Lows
Apr 7th, 2017 @ 11:10 AM by Amber Nelson
Long-term mortgage interest rates fell in the latest week, nearly tying the 2017 yearly low, according to mortgage giant Freddie Mac. The move is a response to weaker stock market prices and concerns that Trump Administration tax cuts will not materialize quickly.
The average rate on a 30-year fixed rate mortgage (FRM) slid to 4.10 percent with an average 0.5 point, during the week ended April 6, 2017, down from 4.14 percent the week before. It is just 0.01 percent above the previous 2017 low set in March. One year ago, the average rate was 3.59 percent.
“The 10-year Treasury yield was relatively unchanged this week, while the 30-year mortgage rate fell 4 basis points to 4.1 percent,” said Freddie Mac chief economist Sean Becketti. “After three straight weeks of declines, the 30-year mortgage rate is now barely above the 2017 low. Next week’s survey rate may be determined by Friday’s employment report and whether or not it can sustain the strength from earlier this year.”
Rates on 15-year FRMs also declined, falling to 3.36 percent with an average 0.5 point, down from 3.39 percent a week earlier. A year ago, the rate averaged 2.88 percent.
The average rate on a 5-year Treasury-indexed hybrid adjustable rate mortgage (ARM) rose to 3.19 percent with an average 0.4 point, barely changed from last week’s 3.18 percent. A year earlier, the average rate was 2.82 percent.
When the Trump Administration’s attempt to replace Obamacare failed in Congress, investors worried that other items on his agenda will not pass either. His tax cuts proposals may take some time to make their way through the House and Senate. Many of his tax plans are viewed as leading to higher inflation and consequently higher mortgage rates. The markets moved toward the safety of bonds, pushing rates lower.
Mortgage shoppers are in luck this week.
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.