Mortgage interest rates remained largely unchanged yesterday, following the release of some mixed domestic economic reports. As far as weekly jobless claims are concerned, the Labor Department reported on Thursday that initial jobless claims declined by 36,000 to a seasonally adjusted 289,000 last week, a much better reading than the consensus expectation. Economists surveyed by The Wall Street Journal predicted a reading of 305,000 jobless claims. Despite the positive momentum in the job market, the report is fairly mixed due to the fact that last week’s jobless claims figure was revised up.
On the other hand, retail sales in February fell sharply, according to the Commerce Department’s latest data. Headline retail sales decreased by 0.6% last month, which falls way short of the consensus reading of a 0.4% growth. Back in January retail sales were down 0.8%. The core figure, which doesn’t contain volatile gas and car sales dipped by 0.2% month-over-month. Following these weak numbers financial markets rallied.
Some lenders repriced their rate sheets with lower mortgage interest rates on Thursday, while those who haven’t done it, are expected to do so this morning.
According to Freddie Mac’s latest weekly Primary Mortgage Market Survey (PMMS), the average mortgage interest rate on the 30-year fixed loan increased to 3.86% from 3.75%, that it held last week. The shorter-term, 15-year FRM now hovers at 3.10%, an uptick of 7 basis points compared to last week’s data. The 5-year Treasury-indexed hybrid adjustable-rate mortgage edged up to 3.09% from the previous 2.96%. With regards to the 1-year Treasury-indexed ARM, it came in at 2.46%, moving up from 2.44%.
Now, looking at current mortgage rates this Friday, mortgage-backed securities (MBS), which have a big influence on interest rates, are slightly down, but close to unchanged. We shall wait and see how it plays out, but we don’t anticipate any major net change in mortgage rates today.
At major U.S. loan provider, Wells Fargo (NYSE:WFC), the 30-year fixed home purchase loan is coming out at a rate of 4.000% on Friday. The 15-year version of this type of conventional mortgage is up for grabs at a rate of 3.500%. Wells Fargo’s home refinance loan portfolio includes the 30-year FRM, which starts at 4.125%. The shorter-term, 15-year home refi mortgage is quoted at a rate of 3.500%.
Chase (NYSE:JPM) offers a number of mortgage loans to qualified borrowers, including the 30-year fixed rate home loan. On Friday, this type of mortgage has an asking rate of 3.625%. Borrowers, who prefer taking on the 15-year fixed home loan, will see this conventional loan coming out at 3.000%. Turning attention to the lender’s home refinance loan program, the standard 30-year fixed mortgage is currently available at a rate of 3.875%. Another possible option, the popular 15-year FRM, can be secured for as low as 3.375%.
At North Carolina-headquartered top lender, Bank of America (NYSE:BAC), the 30-year fixed home loan is quoted at a rate of 3.750%. The 15-year home loan alternative is carrying 3.000% interest cost, according to the latest data. The lender’s refinance loan information shows, that the 30-year refi mortgage, which features a fixed interest rate during the loan’s term, hovers at 3.750%. Individuals, who believe the 15-year fixed refinance loan is a more suitable option, can expect to pay 3.000% at this lender.
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.