Fixed mortgage rates’ steady decline ends

Lack of movement may signal increase ahead; bond yields up sharply.

Fixed mortgage rates’ downward march came to a halt this week.

According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average held steady at 3.78 percent with an average 0.5 point, same as it was last week.

(Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.5 percent a year ago.

The 15-year fixed-rate average also didn’t move, remaining at 3.08 percent with an average 0.5 point. It was 2.77 percent a year ago.

The five-year adjustable rate average slipped to 3.13 percent with an average 0.4 point. It was 3.15 percent a week ago and 2.82 percent a year ago.

The lack of movement by fixed mortgage rates may be the pause before they begin to ascend once again.

Long-term bond yields rose sharply this week, after slumping to their lowest levels since the presidential election.

Since falling to 2.05 percent on Sept. 7, the yield on the 10-year Treasury surged to 2.20 percent Wednesday.

The yield on the 10-year Treasury tends to be one of the best indicators of where home loan rates are headed. When yields go up, mortgage rates tend to follow.

Bankrate.com, which puts out a weekly mortgage rate trend index, found that more than twothirds of the experts it surveyed say rates will climb in the coming week.

Shashank Shekhar, chief executive of Arcus Lending, is one who believes rates will move higher.

“After touching the lowest levels of the year last week, mortgage rates have since trended up,” Shekhar said.

“North Korea fears have been abated and damages by Irma and Harvey have been digested.

“Unless we get a black swan moment, something that shocks the stock market, I am not too bullish on mortgage-backed securities. This would mean a slightly higher mortgage rate in the coming week for the borrowers.”

Meanwhile, despite two natural