Quote Attributed to Sean Becketti, chief economist, Freddie Mac. "This week's survey closed prior to Wednesday's flight to quality", he said.
US mortgage rates fell in step with bond yields in the wake of weaker-than-expected domestic economic data and as investors scaled back expectations about interest rate increases by the Federal Reserve in 2017, according to Freddie Mac (FMCC.PK) on Thursday.
Interest rates for 30-year and 15-year fixed home loans, as well as 5/1 ARM rates, are all lower again today, according to a NerdWallet survey of current mortgage rates published by national lenders Thursday morning. The 30-year fixed mortgage has an average of 0.25 discount and origination points. Adjustable mortgage rates were on the decline as well, with the 5-year ARM sinking to 3.42 percent and the 7-year ARM reverting to where it had been two weeks ago at 3.62 percent.More news: Former FBI Director Mueller to lead Trump-Russia probe
The 15-year fixed-rate average dropped to 3.27 percent with an average 0.5 point.
Higher interest rates over the past few weeks weighed on refinance volume, which fell 6 percent for the week and is down almost 37 percent from the same week one year ago. As bond prices rose, yields - and mortgage rates - fell. The 10-year Treasury bond slipped near below 2.3% in overnight trading Tuesday.
"The 30-year mortgage rate fell 3 basis points this week to 4.02 percent". David Kuiper, vice president of Northpointe Bank in Holland, Michigan, is one who predicts home loan rates will head lower. The market composite index - a measure of total loan application volume - decreased 4.1 percent. "This benefits the bond market (where mortgage interest rates are priced), as investors look for certainty and to avoid volatility". ARM volume is now up 24 percent from a year ago.