Fixed mortgage rates stop climbing after almost 2 months

After seven consecutive increases, fixed mortgage rates reversed course this week.

According to the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average slipped to 3.13 percent with an average 0.7 point. (Points are fees paid to a lender equal to 1 percent of the loan amount and are in addition to the interest rate.) It was 3.18 percent a week ago and 3.33 percent a year ago.

The 15-year fixed-rate average slid to 2.42 percent with an average 0.6 point. It was 2.45 percent a week ago and 2.77 percent a year ago. The five-year adjustable rate average rose to 2.92 percent with an average 0.1 point. It was 2.84 percent a week ago and 3.4 percent a year ago.

“Mortgage rates fell this week, holding firm even as key economic data reports show signs of continued improvement,” said Matthew Speakman, a Zillow economist. “Rates have paused their consistent ascent several times in the past few months, but for the first time since the beginning of the year, there are some indications that this reprieve from rates’ upward trend could be a lasting one. … With coronavirus cases beginning to rise again in most U.S. states and many countries around the world, investors have a renewed reason for caution, which tends to push bond yields, and mortgage rates, downward.”

The Fed does not set mortgage rates, but its decisions can sway investors. Mortgage rates are influenced more by investors’ expectations. Good economic news is often bad for rates because a strong economy prompts concern about inflation. Inflation causes bonds to lose value and yields to rise.

Bankrate.com, which puts out a weekly mortgage rate trend index, found more than half of the experts it surveyed expect rates to remain about the same in the coming week.

“Mortgage interest rates have been creeping higher for well over a month,” said Elizabeth Rose, sales manager at AmCap Mortgage in Dallas. “Finally, it looks as though mortgage bonds may have caught a break. Mortgage bonds have broken the trend and are making a strong attempt at bouncing. While a modest improvement in rates is possible, it could be short lived. It is more likely that rates will hang onto the improvement and trend sideways.”