Freddie Mac: Mortgage Rates Low, May Get Lower

Adjust Comment Print

Matthew Graham at Mortgage News Daily noted on Tuesday that mortgage rates have moved to their lowest level in two weeks, in a range of 4.00% to 4.25%, with 4.125% being the most-often offered rate for top-tier borrowers.

The rate on 15-year mortgages eased to 3.27 percent from 3.29 percent last week.

As the yield on the 10-year Treasury fell sharply Wednesday, so too did mortgage rates.

This chart shows the movement of mortgaged rates over the past year.

On Thursday, the benchmark 10-year Treasury yield US10YT=RR fell to a one-month low at 2.18 percent as safety bids for USA government bonds grew on worries about a scandal around Brazilian President Michel Temer, spurring a rout in the Brazilian stock market .BVSP.

"The 30-year mortgage rate fell three basis points this week to 4.02%", Freddie Mac Chief Economist Sean Becketti said.

30 year loan interest rates at Suntrust Banks (NYSE:STI) start at 3.990% today with an April of 4.1081%. Bond prices rose as investors shunned riskier assets.

Wednesday's selloff - the Dow took its biggest dive in eight months - took place after Freddie Mac polled lenders for this week's survey. The 10-year Treasury bond slipped near below 2.3% in overnight trading Tuesday. And with the bond market in favor for the time being, late-spring home buyers are getting a break: even lower mortgage rates.

Bankrate.com, which puts out a weekly mortgage rate trend index, found that more than half of the experts it surveyed say rates will go down.

"Recent political turmoil and some not-so-great economic data have the stock market a bit jittery", Kuiper said. The best 30 year jumbo loans are 4.400% with an April of 4.4678%. The faster growth for conventional loans, which tend to be larger, led to another record high for the average purchase loan size at $322 thousand.

Comments