Mortgage rates barely budged on Thursday compared to yesterday, when interest rates experienced more volatility. In the morning some stronger-than-expected domestic economic data got released, which put a pressure on the bond market. However, the pressure wasn’t enough to convince lenders to revise their rate sheets with higher mortgage rates. Then in the afternoon U.S. bonds bounced back a bit, which ultimately prevented mortgage rates to inch higher. Compared to the past few weeks, mortgage rates have been in a calmer environment this week. Although, this is a good sign for interest rates following a strong pressure toward higher levels since mid-May, there’s no sign in sight that the recent trend, which has been favoring higher interest rates, will change dramatically in the near future.
During late afternoon trading the yield on the benchmark 10-year treasury note drifted higher to 2.352% compared with yesterday’s 2.306%. On the other hand, the 30-year treasury note experienced a bigger weakness on Thursday, with the yield going up to 3.143% from the previous 3.071% that it held a day earlier.
Today a good chunk of domestic economic reports saw the light of day. The headline Consumer Price Index increased a seasonally adjusted 0.4% in May, which is the biggest jump since 2013, according to the Labor Department. The primary driver for the gain was a sharp jump in gas prices. The core CPI, which excludes volatile food and energy categories, inched up 0.1% last month, compared to data from a month earlier. Although, there are some some signs that inflation is firming, it’s still well-below the Fed’s target level.
Fewer Americans filled claims for unemployment benefits last week than expected, according to the Labor Department’s latest data. Applications for jobless aids dropped 12,000 to a seasonally adjusted 267,000 last week. The consensus expectation was for a reading of 275,000. The four-week moving averaged declined by 2,000 to 276,750. U.S. jobless claims remained near 15-year lows and the job market figures from the last couple of weeks indicate a firming in the labor market.
Manufacturing conditions in the Philadelphia region improved in June, coming in at 15.2 versus the consensus expectation of 8.0, the Philly Fed’s Manufacturing Business Outlook Survey revealed on Thursday. This is an encouraging report, the first sign that economic activity in the manufacturing sector is picking up.
With regards to national mortgage rates, Freddie Mac published its latest Primary Mortgage Market Survey (PMMS) on Thursday, and according to the federal agency’s findings, the average rate on the 30-year FRM eased to 4.00% this week. The same type of mortgage loan hit its highest level of the year last week, in the form of 4.04%. The 15-year fixed mortgage averaged a lower rate as well this week, and now it’s hovering at 3.23%, according to Freddie Mac’s data. A regional breakdown of current mortgage rates showed that average interest rates on 30-year fixed loans are the lowest for applicants in the Northeast region. The federal agency’s latest data revealed that the 30-year FRM came in with an average rate of 3.97% and a 0.6 discount points in the Northeast region. According to the survey, the highest average rate for the 30-year FRM was measured in the North Central region, coming in at 4.02% with 0.7 discount points.
Another financial company, Bankrate, released its own mortgage survey earlier today, which showed that interest rates pulled back from recent highs. The firm’s survey revealed, that the interest rate on the 30-year fixed mortgage carried 4.13% this week, an improvement of 2 basis points compared to prior week’s data. The average interest rate on the 15-year FRM dipped to 3.35% this week, which translates to a downtick of 4 basis points compared to the 3.39% figure that it held before. With regards to the 5-year ARM, the rate was down by 2 basis points this week, and now it’s hovering at 3.22%, Bankrate’s survey showed.
Heading over to today’s mortgage rates at top lenders, at Bank of America (NYSE:BAC), the 30-year fixed home purchase loan is published at a rate of 4.000%. Those looking to refinance their existing loans over 30 years, will see the interest rate coming out at 4.250% at this lender on Thursday.
Looking at current mortgage loan options at Chase (NYSE:JPM), the standard 30-year FRM for home purchase is available at a rate of 3.875%. The shorter-term 15-year fixed home loan is up for grabs at a rate of 3.375%, according to today’s mortgage information.
The bank’s home refinancing options include the 30-year conventional mortgage, which comes with a fixed interest rate of 4.125% during the term of the loan. Borrowers, who opt for the 15-year home refi mortgage, can expect to pay 3.375% interest cost.
At another top lender, Quicken Loans, the 30-year fixed mortgage, which can be used for refinancing purposes, is offered for as low as 3.99% as of today. Those leaning toward the 15-year refi loan, will see these type of loan plans starting at 3.125%.
The above mentioned interest rates are subject to change and are not guaranteed. In order to search for live mortgage rate quotes from some of the top U.S. lenders, please click on the link below. To calculate your monthly mortgage payment, feel free to use our featured mortgage calculator.