Long-term fixed mortgage rates retreat

After gradually rising for more than a month, fixed mortgage rates fell back last week.

According to data released Thursday by Freddie Mac, the 30-year fixed-rate average slipped to 3.88 percent with an average 0.5 point. (Points are fees paid to a lender equal to 1 percent of the loan amount.) It was 3.91 percent the week before ago and 3.52 percent a year ago.

The 15-year fixed-rate average slid to 3.19 percent with an average 0.5 point. It was 3.21 percent the week before and 2.79 percent a year ago. The five-year adjustable rate average ticked up to 3.17 percent with an average 0.4 point. It was 3.16 percent the week before and 2.85 percent a year ago.

“Treasury yields were relatively flat last week,” said Joel Kan, an economist with the Mortgage Bankers Association. “While the [Federal Open Market Committee] minutes showed an increased likelihood of one more rate increase in 2017, nudging rates slightly higher, the week’s gains were offset by a downturn on Friday due to weaker than expected inflation data.”

Bankrate.com, which puts out a weekly mortgage rate trend index, found that half the experts it surveyed say rates will remain relatively stable in the coming week. Michael Becker, branch manager at Sierra Pacific Mortgage, is one who predicts rates will move slightly higher.

“Last week’s lower than expected consumer price index report helped bonds rally and moved mortgage rates slightly lower,” Becker said. “But that rally was short lived. It seems nothing can shake the market’s risk on bent with equity markets hitting all-time highs almost daily. Because of this it will be hard for bonds to rally much.”

Meanwhile, mortgage applications rebounded last week, according to Mortgage Bankers Association data. The market composite index — a measure of total loan application volume — increased 3.6 percent. The refinance index grew 3 percent, while the purchase index rose 4 percent.