Mortgage Rates Fall for 3rd Straight Week
Apr 5th, 2018 @ 1:48 PM by Amber Nelson
The Freddie Mac Primary Mortgage Market Survey showed that the average interest rate on a 30-year fixed rate mortgage (FRM) during the week ended April 5, 2018 was 4.40% with an average 0.5 point, down from 4.44% the previous week. This marks three straight weeks of decline after three solid months of gains. On a yearly basis however, rates were still up from 4.10%.
“After dropping earlier this week on trade-related anxiety in financial markets, the benchmark 10-year Treasury stabilized on Wednesday, but at a level slightly lower than from the start of last week. Mortgage rates followed…” said Freddie Mac Deputy Chief Economist Len Kiefer. “Though rates on the 30-year fixed mortgage are up 0.3 percentage points from the same week a year ago, a robust labor marking is helping home purchase demand weather modestly higher rates. The Mortgage Bankers Association (MBA) reported in their latest Weekly Mortgage Applications Survey that the Purchase Index was up 5 percent from a year ago indicating that this spring is on track for a modest expansion in purchase mortgage activity.”
Shorter-term mortgage loans also fell with the average on a 15-year FRM dropping to 3.87% with an average 0.4 point, down from 3.90% last week. The rate is higher than a year earlier when it averaged 3.36%.
Rates on 5-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) slipped to an average of 3.62% with 0.4 point, down from 3.66% the week before but remain higher compared to last year when they averaged 3.19%.
Even with the recent drop in mortgage rates, refinance activity has been near record lows, according to the MBA. Its survey reported a 5 percent decrease in its Refinance Index and that refinance requests now make up just 38.5% of all mortgage applications, the lowest share in almost a decade.
Amber Nelson is a seasoned mortgage industry writer and a regular contributor to Loan.com and Mortgage101.com.