Relief in Mortgage Rates Likely to Stick Around!

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DAILY REAL ESTATE NEWS | FRIDAY, JULY 10, 2015

Average fixed-rate mortgages moved lower this week, helping to keep buyer activity strong toward the close of the spring homebuying season, Freddie Mac reports in its weekly mortgage market survey.

Read more:  A Slip in Rates Lifts Mortgage Demand

"Yields on Treasury securities declined this week in response to investor concerns about events in Greece and China," says Sean Becketti, Freddie Mac's chief economist. "Mortgage rates fell as well, although not by as much as government bond yields. The rate on 30-year fixed-rate mortgages fell 4 basis points to 4.04 percent. Overseas volatility is likely to persist for some time, providing some restraint on potential U.S. rate increases."

Also, Becketti notes that the minutes of the June meeting of the Federal Open Market Committee suggest the Federal Reserve will proceed cautiously -- monitoring events both overseas and in the U.S. in determining when to begin raising short-term interest rates.

"As a result, mortgage rates may remain in the neighborhood of 4 percent for a while," Becketti notes.

Freddie Mac reports the following national averages with mortgage rates for the week ending July 9:

• 30-year fixed-rate mortgages: averaged 4.04 percent, with an average 0.6 point, dropping from last week's 4.08 percent average. A year ago, 30-year rates averaged 4.15 percent.
• 15-year fixed-rate mortgages: averaged 3.20 percent, with an average 0.5 point, dropping from last week's 3.24 percent average. Last year at this time, 15-year rates averaged 3.24 percent.
• 5-year hybrid adjustable-rate mortgages: averaged 2.93 percent, with an average 0.4 point, dropping from last week's 2.99 percent average. A year ago, 5-year ARMs averaged 2.99 percent.
• 1-year ARMs: averaged 2.50 percent, with an average 0.3 point, dropping from last week's 2.52 percent average. A year ago, 1-year ARMs averaged 2.40 percent.

Source: Freddie Mac

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Loan Demand Surges on Fear of Rising Rates!

Applications for fixed-rate mortgages climbed to the highest level in nearly a year as borrowers rushed to lock in interest rates before they jump higher. Total mortgage application activity for refinancings and home purchases rose 8.4 percent week-over-week on a seasonally adjusted basis for the week ending June 5, the Mortgage Bankers Association reported Wednesday.

"Mortgage application volume rebounded strongly," says Mike Fratantoni, MBA's Chief Economist.

Broken out, refinance applications rose 7 percent week-over-week while applications for home purchases rose 10 percent. Applications for home purchases are now 15 percent higher than the same week a year ago. Refinance applications still remain nearly 5 percent below last year's levels. MBA reports that the average 30-year fixed-rate mortgage rose to 4.17 percent last week, the highest since last November.

"These increases really help the homebuying market," Matt Weaver with PMAC Lending told CNBC. "It really gets buyers to understand that ... rates are at an all-time low — let's react before they go higher."

Source: “Weekly Mortgage Applications Jump as Rates Surge,” CNBC (June 10, 2015)

An Expert In Your Court
Robert De La Rosa
"CALL NOW 909.271.5640"
"Get Qualified Now By A Loan Professional" 

www.TheCaliforniaPropertyConnection.biz 

Coldwell Banker Town & Country
501 W Redlands Blvd
Redlands CA, 92373

CalBre 01435824