Mortgage Refi Demand Eases As Rates Firm

by Frankie Norman July 24, 2016, 7:28
Mortgage Refi Demand Eases As Rates Firm

The average contract interest rate for 15-year fixed-rate mortgages increased to 2.90% from 2.88%, with points decreasing to 0.31 from 0.34 (including the origination fee) for 80% LTV loans. In contrast, the 30-year mortgage rate declined after the Brexit vote, but only by half as much as the 10-year Treasury yield. The average interest rate for a 15-year fixed-rate mortgage increased from 2.88% to 2.90%.

The share of ARM activity decreased to 5.1% of total applications.

Adjustable rate mortgage loans accounted for 5.1% of all applications, down from 5.2% in the previous week. The cut may not be good news for everyone, as interest rates for savers continue to be at their lowest, with annuities and gilts falling in value. Strength in retail spending, housing starts, industrial production and a pickup in inflation were all reported within the past week.

All the mortgage rates published by banks sometimes move with market traded MBSs that are dependent on the stock market.

Interest rates are often steered by mortgage related bond prices which roughly follow motions in the stock market. "This week, the 30-year fixed mortgage rate increased 3 basis points to a still-quite-low 3.45%".

Previously, Capital Economics claimed that the Fed would raise rates faster than the markets now expect.

The survey is complemented by Bankrate's weekly Rate Trend Index, in which a panel of mortgage experts predicts which way the rates are headed over the next seven days. Rates on 30-year mortgages have been gradually climbing higher over the past week and today most major lenders repriced their terms significantly higher. Just 18 percent forecast an increase in mortgage rates over the next seven days.

About Zillow Mortgages Zillow Mortgages, operated by Zillow, Inc., is a free, open, and transparent lending marketplace, where borrowers connect with lenders to find loans and get the best mortgage rates. Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. Bankrate develops and provides web services to more than 100 cobranded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the internet, such as Comcast, Yahoo!, CNBC and Bloomberg. Wall street lost ground by close today with the DJIA at 18517.23 a decrease of -77.80.

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