Mort­gage rates con­tinue to drop

The Palm Beach Post - Residences - - Front Page -

Most con­sumers and an­a­lysts ex­pected mort­gage rates to rise sharply af­ter the first of the year. In­stead, those rates have con­tin­ued to de­cline.

At this writ­ing, and for the sixth con­sec­u­tive week, mort­gage rates were on a down­ward spiral as the 30-year fixe­drate mort­gage hov­ers near its 2015-low of 3.59 per­cent, Fred­die Mac re­ports.

“The 30-year mort­gage rate dropped an­other 7 ba­sis points this week to 3.65 per­cent,” says Sean Beck­etti, Fred­die Mac’s chief econ­o­mist. “This week’s drop leaves the mort­gage rate just 6 ba­sis points above last year’s low of 3.59 per­cent. In a fall­ing rate en­vi­ron­ment, mort­gage rates of­ten ad­just more slowly than cap­i­tal mar­ket rates, and the early-2016 flight-to-qual­ity has run true to form.”

The quote was in­cluded in a spe­cial re­port on the sub­ject by the Na­tional As­so­ci­a­tion of Realtors.

“The 30-year mort­gage rate has dropped 36 ba­sis points since the start of the year, while the yield on the 10-year Trea­sury has dropped 59 ba­sis points over the same pe­riod. If Trea­sury yields were to hold at cur­rent lev­els, mort­gage rates might well sink a lit­tle fur- ther be­fore sta­bi­liz­ing.”

The NAR re­port con­tin­ues:

“Fred­die Mac re­ports the fol­low­ing na­tional av­er­ages. The 30-year fixed-rate mort­gages: av­er­aged 3.65 per­cent, with an av­er­age 0.5 point, drop­ping from last week’s 3.72 per­cent av­er­age. Last year at this time, 30-year rates av­er­aged 3.69 per­cent.

“The 15-year fixe­drate mort­gages: av­er­aged 2.95 per­cent, with an av­er­age 0.5 point, fall­ing from 3.01 per­cent last week. A year ago, 15-year rates av­er­aged 2.99 per­cent. The 5-year hy­brid ad­justable-rate mort­gages: av­er­aged 2.83 per­cent, with an av­er­age 0.4 point, drop­ping from last week’s 2.85 per­cent av­er­age. A year ago, 5-year ARMs av­er­aged 2.97 per­cent.”

Jim Woodard

Open House

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.